Suriname: 2019 Article IV Consultation-Press Release; Staff Report; Informational Annex; and Statement by the Executive Director for Suriname
IMF Staff Country Reports, December 23, 2019
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- Suriname: 2019 Article IV Consultation-Press Release; Staff Report; Informational Annex; and Statement by the Executive Director for Suriname
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Bibliographic details
- Published: December 23, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513524498.002
Overview and main findings
- Suriname continues to grow steadily with low inflation.
- Little progress has been made in implementing urgently needed fiscal reforms.
- The fiscal position is likely to continue to weaken in the coming year.
- The consultation focused on policies to bolster the economy in the medium term:
- fiscal measures to enhance revenues and efficiency and lower expenditures;
- policies to improve the monetary and financial sector supervision frameworks;
- structural policies to boost potential growth.
Fiscal position and policy recommendations
- Immediate objective: put public debt on a sustainable path.
- A significant reduction in the fiscal deficit could be achieved by:
- implementing a value-added tax;
- curtailing electricity subsidies except to the poor;
- improving public financial management.
- Urgent fiscal reforms remain largely unimplemented, increasing risks to near-term fiscal sustainability.
Monetary framework and central bank issues
- Advances have been made in developing the central bank’s monetary tools and facilities.
- More is needed to strengthen the credibility of the monetary framework.
- Gaps exist in the central bank’s supervisory and resolution framework.
Banking sector and financial stability risks
- The banking sector faces important downside risks.
- Strengthening supervision and resolution frameworks is advised to mitigate these risks.
Structural reforms to boost potential growth
- Structural policies aimed at raising potential growth were emphasized in the consultation.
- Policy measures span revenue enhancement, expenditure efficiency, monetary and financial sector frameworks, and broader structural reforms.
International Monetary Fund — Suriname: 2019 Article IV Consultation-Press Release; Staff Report; Informational Annex; and Statement by the Executive Director for Suriname (December 23, 2019).
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