A delegation from the International Monetary Fund (IMF) is ending a visit to Suriname on Friday indicating that economic growth ‘has been decent’ and is expected to continue at around two to three per cent in the next few years.
In a statement, the IMF delegation, led by the new mission chief for Suriname, Alberto Behar, said that as the Dutch-speaking Caribbean Community (CARICOM) country prepares to celebrates its 50th anniversary of independence, it finds itself at a critical juncture. ‘In recent years, it had commendably restored macroeconomic stability and significantly improved its institutional frameworks for macroeconomic policymaking. At the eve of a significant oil boom, the authorities’ task is to act now to lay the groundwork and build the institutions needed to fully harness the country’s newly found oil wealth.
‘Doing so successfully will ensure these precious resources are used efficiently and productively to materially improve people’s livelihoods. As these resources are being developed in the coming years, it will be essential to maintain a prudent fiscal-monetary policy mix, improve governance, and strengthen institutional capacity.’
The IMF delegation said that the new government of President Jennifer Greeling-Simons, which took office in July 2025, recognizes that such a reform package is necessary to improve the country’s health, education, safety, infrastructure as well as diversification, for example through tourism and agriculture, entrepreneurship, and growth potential.
The IMF delegation said that growth has been decent and is expected to continue at around two to three per cent.
‘During the course of this year, gold production has been disappointing but, going forward, economic activity is expected to be increasingly supported by the development of the Block 58 oil project.
‘The field development is, though, import intensive, and a large current account deficit is expected in 2026-28, financed by FDI (foreign direct investment) inflows. Foreign exchange reserves coverage remains adequate as insurance against external shocks. Block 58 oil is expected to start in 2028 leading to a doubling of real GDP by 2030.’
The IMF delegation said that macroeconomic stability is being eroded, noting that after primary surpluses in 2022-2024, the fiscal position has worsened and is expected to record a primary deficit on a cash basis and excluding a necessary central bank recapitalization of about one per cent of gross domestic product (GDP) in 2025 but with a sizable increase in suppliers’ arrears.
‘This pre-election fiscal expansion has caused a significant reduction in the government’s cash balances and the resulting injection of liquidity has put pressure on the exchange rate. These factors and the fiscal boost to demand have increased inflation from around six per cent earlier in the year to over 10 percent’.
Furthermore, the IMF delegation noted, monetary aggregates have been allowed to grow faster than the central bank’s reserve money targets since late 2024 and the central bank has been intervening to moderate the currency depreciation.
It said the authorities conducted a successful liability management operation and that the transaction was centered around the issuance of US$1.575 billion in five and 10-year Eurobonds.
‘The proceeds financed a cash tender offer for some existing 2033 Eurobonds and the remainder are being held in an overseas escrow account to be used to buy back outstanding 2033 Eurobonds and some or all of the oil-linked value recovery instruments.
‘These resources could also be used to prepay bilateral debt and will finance some interest payments on the new Eurobonds. The operation shores up the financing needed to service debt until after Block 58 oil revenues begin to flow in.’
But the government is being warned that there is an urgent need to improve the fiscal balance in 2026-7., with the IMF delegation projecting a primary balance of around zero per cent percent of GDP in 2026.
‘ A larger and more credible consolidation, underpinned by clear policy measures, would reduce depreciation and inflationary pressures and help the central bank to meet its monetary goals. In turn, this would preserve purchasing power and help businesses operate.
‘Such improvements would also create buffers against future downside risks,-for example, a 25 per cent decline in gold prices, which could reduce fiscal revenues by two per cent of GDP’.
The IMF delegation said that the government’s fiscal plan should be consistent with the recently legislated fiscal frameworks.
‘A five-year fiscal plan should be submitted to the National Assembly, alongside the 2026 budget, with both annual spending ceilings and a target for debt – net of Savings and Stabilization Fund assets -, this year.
‘While there are pressing spending needs in education, health, roads, electricity, and water and sanitation, spending limits should be raised only gradually to allow for an improvement in the government’s capacity to o effectively execute such spending.’
The IMF delegation said that Suriname should strengthen its public investment management practices and implement its Public Financial Management Priority Action Plan and that the he Savings and Stabilization Fund Suriname needs to be operationalised.
The delegation is also informing the government of the ‘urgent need to strengthen transparency and anticorruption controls ahead of the surge in hydrocarbon revenues.
‘The new procurement law should be implemented immediately. It requires the publication of all tenders, procurement contracts, names of the awarded entities and their beneficial owners, and the names of the public officials awarding the contracts.
‘It also requires ex-post validation of the delivery of the contracted service. The amendment to the anti-corruption law-to mandate the declaration of income and assets of politically exposed persons, to require verification and publication of these declarations, and to establish dissuasive sanctions for non-compliance-should be passed by the parliament and then promptly implemented,’ the IMF delegation added.
In August, the Suriname government said it would not enter into a new agreement with the IMF similar to the one that had been successfully implemented by the Santokhi government
‘We will not implement an IMF programme like we had,’ President Geerlings- Simons said, adding ‘but we will certainly remain on speaking terms to help us with our financial affairs, to provide advice on this, and to help strengthen institutions.’
In 2021, the IMF executive board approved Suriname’s Extended Fund Facility (EFF) US$572 million arrangement with the country pursuing an ambitious economic reform agenda with the objective of restoring macroeconomic stability and debt sustainability, while laying the foundations for strong and more inclusive growth.
The programme, which ended earlier this year, focused on restoring fiscal and debt sustainability, protecting the poor and vulnerable, upgrading the monetary and exchange rate policy framework, addressing banking sector vulnerabilities, and advancing the anti-corruption and governance reform agenda.