Click here for the Suriname Semi-Annual Report CBvS 2013-I.

The global economic situation did not change much during the first half of 2013 since the last semi-annual report was published. An overall downward revision of growth prospects by international financial institutions signaled the still existing downside risks. Growth declined in most major economies, as well as in the larger emerging economies. This has led to a decline in global demand, which in turn was largely responsible for downward pressure on commodity prices.

The Surinamese economy was affected by the decline in international commodity prices in the first half of 2013. Production and export volumes declined in Suriname’s commodity export sectors. As a result, foreign exchange and fiscal revenue from the mining sector fell. Agricultural production and exports were also affected by unfavorable prices. However, ongoing capital investments in the oil and mining sectors were not affected. Together with a strong domestic demand this resulted in an increase in imports. The Central Bank maintained a stable exchange rate by supplying foreign exchange to the banking system. Inflation has continued to decelerate.

The fiscal deficit widened in the first half of 2013 as mining revenue declined and public expenditure increased. Debt financing notwithstanding, government debt has remained manageable and within its statutory limits.

Banking sector credit has continued to grow and tertiary sectors have remained the prime beneficiaries. Financial soundness indicators illustrate that the banking sector is sufficiently capitalized, reasonably profitable, and liquid.