Flag description: five horizontal bands of green (top, double width), white, red (quadruple width), white, and green (double width); there is a large, yellow, five-pointed star centered in the red band
Suriname Economy
Economy - overview: The economy is dominated by the bauxite industry, which accounts for more than 15% of GDP and 70% of export earnings. After assuming power in the fall of 1996, the WIJDENBOSCH government ended the structural adjustment program of the previous government, claiming it was unfair to the poorer elements of society. Tax revenues fell as old taxes lapsed and the government failed to implement new tax alternatives. By the end of 1997, the allocation of new Dutch development funds was frozen as Surinamese Government relations with the Netherlands deteriorated. Economic growth slowed in 1998, with decline in the mining, construction, and utility sectors. Rampant government expenditures, poor tax collection, a bloated civil service, and reduced foreign aid in 1999 contributed to the fiscal deficit, estimated at 11% of GDP. The government sought to cover this deficit through monetary expansion, which led to a dramatic increase in inflation and exchange rate depreciation. Suriname's economic prospects for the medium term will depend on renewed commitment to responsible monetary and fiscal policies and to the introduction of structural reforms to liberalize markets and promote competition. The new government of Ronald VENETIAAN has begun an austerity program, raised taxes, and attempted to control spending. the exchange rate has responded by stabilizing. The Dutch Government has restarted the aid flow, which will allow Suriname to access international development financing.
GDP: purchasing power parity - $1.48 billion (1999 est.)
GDP - real growth rate: -1% (1999 est.)
GDP - per capita: purchasing power parity - $3,400 (1999 est.)
GDP - composition by sector: agriculture: 13%
industry: 22%
services: 65% (1998 est.)
Population below poverty line: NA%