Economy of Suriname

The economy of Suriname was largely dependent upon the exports of aluminium oxide and small amounts of aluminium produced from bauxite mined in the country. However, after the departure of Alcoa, the economy depended on the exports of crude oil and gold. Suriname was ranked the 124th safest investment destination in the world in the March 2011 Euromoney Country Risk rankings.

Top Sectors in Suriname

Agriculture in Suriname

A member of CARICOM, Suriname also exports in small numbers rice, shrimp, timber, bananas, fruits, and vegetables. Fernandes Group is a soft drinks company bottled by Coca-Cola world-wide. Other agricultural products of Suriname palm kernels, coconuts, peanuts; beef, chickens; forest products; shrimp.

Mineral industry in Suriname

The backbone of Suriname's economy was the export of aluminium oxide (alumina) and small amounts of aluminium produced from bauxite mined in the country.<br>Oil: Petroleum is a promising sector. Staatsolie, the state-owned oil company, produced 16,200 barrels (2,580 m3) a day in 2012. Staatsolie currently refines 7,350 barrels (1,169 m3) a day at Tout Lui Faut in the District of Wanica and is building more capacity to go to 15,000 barrels (2,400 m3) a day.

Suriname - Key Economic Indicators

Exports & Imports

Suriname's economy relies heavily on exports of natural resources, particularly gold and oil, which account for over 80% of export earnings. However, the country also exports some agricultural products like rice, bananas, and shrimp. Suriname imports a wide range of manufactured goods, machinery, and food products. The country typically runs a trade surplus, with exports exceeding imports.

Balance of Trade

Suriname's dependence on resource exports makes its trade balance vulnerable to fluctuations in global commodity prices. A decline in commodity prices could lead to a trade deficit. The government is exploring ways to diversify exports and reduce reliance on a few key resources.

Fiscal Policy

Suriname's fiscal situation is strained due to volatile government revenue from resource exports. High spending and a large public debt burden further complicate matters. The government is implementing austerity measures to reduce spending and control inflation.

Monetary Policy

The Central Bank of Suriname (CBvS) is responsible for monetary policy. A key challenge is maintaining a stable exchange rate for the Surinamese dollar (SRD) and controlling inflation, which has been a persistent problem in recent years. The CBvS uses tools like interest rate adjustments and foreign exchange interventions to achieve these goals.

Tax system

Capital Gains Tax: Information on a dedicated capital gains tax is limited. Profits from investments might be taxed as regular income.
Corporate Tax Rate: A flat corporate tax rate of 25% applies to most businesses.
Sales Tax: Suriname utilizes a Value Added Tax (VAT) system.
Property Tax: A property transfer tax of 7% is levied on the sale of real estate. An annual property tax based on appraised value also applies, with rates varying depending on location and property type.
Payroll Tax: A social security contribution system funded by both employers and employees exists. The exact contribution rates might vary depending on the specific social security program.
Tax Deductions and Credits: While details are limited, some deductions for business expenses and personal allowances might be available. The government might also offer tax breaks for investments in specific sectors or regions to promote economic development.
Tax Compliance: Tax compliance in Suriname is considered moderate, with ongoing efforts to improve collection efficiency. The government is utilizing electronic filing systems and strengthening enforcement measures to address tax evasion.
Tax Burden: The overall tax burden in Suriname is considered moderate compared to some South American countries.