International Monetary Fund. Western Hemisphere Dept.
This 2013 Article IV Consultation highlights that Suriname’s macroeconomic performance has strengthened markedly over the past decade. Since 2000, stronger policies and buoyant commodity prices, supported by political stability, have helped improve macroeconomic performance, enabling Suriname to enjoy several recent upgrades from major ratings agencies. With gold prices declining after a long upswing, the main challenges are to strengthen institutions and adjust policies to avoid the onset of a boom–bust cycle. Growth remains robust although inflation has declined considerably. In 2012 GDP grew an estimated 4.75 percent, similar to 2011 and among the highest in the region, supported by buoyant commodity prices, particularly gold.
This Selected Issues paper describes the revenue instability and its consequences for Suriname. It explores some options for policy rules that could be considered in the case of Suriname. The paper analyzes inflation in Suriname from its historical and international perspectives, reviews the monetary policy instruments and the institutional framework, and describes the exchange rate regime and its main developments. The paper also analyzes the type of macroeconomic shocks and the domestic transmission mechanism for Suriname.