Suriname Economy

Economy

The economy is dominated by the alumina industry, which accounts for more than 15% of GDP and 70% of export earnings. Suriname's economic prospects for the medium term will depend on continued commitment to responsible monetary and fiscal policies and to the introduction of structural reforms to liberalize markets and promote competition. The government of Ronald VENETIAAN has begun an austerity program, raised taxes, and attempted to control spending. While - in 2002 - President VENETIAAN agreed to a large pay raise for civil servants, threatening his earlier gains in stabilizing the economy, he has not repeated this promise in the run-up to the May 2005 elections. The Dutch Government has agreed to restart the aid flow, which will allow Suriname to access international development financing, but plans to phase out funds over the next five years. The short-term economic outlook depends on the government's ability to control inflation and on the development of projects in the bauxite and gold mining sectors. Prospects for local onshore oil production are good, as a drilling program is underway. Offshore oil drilling was given a boost in 2004 when the State Oil Company (Staatsolie) signed exploration agreements with Repsol and Mearsk.