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Guyana vs. Suriname

Economy

GuyanaSuriname
Economy - overview

The Guyanese economy exhibited moderate economic growth in recent years and is based largely on agriculture and extractive industries. The economy is heavily dependent upon the export of six commodities - sugar, gold, bauxite, shrimp, timber, and rice - which represent nearly 60% of the country's GDP and are highly susceptible to adverse weather conditions and fluctuations in commodity prices. Guyana closed or consolidated several sugar estates in 2017, reducing production of sugar to a forecasted 147,000 tons in 2018, less than half of 2017 production. Much of Guyana's growth in recent years has come from a surge in gold production. With a record-breaking 700,000 ounces of gold produced in 2016, Gold production in Guyana has offset the economic effects of declining sugar production. In January 2018, estimated 3.2 billion barrels of oil were found offshore and Guyana is scheduled to become a petroleum producer by March 2020.

Guyana's entrance into the Caricom Single Market and Economy in January 2006 broadened the country's export market, primarily in the raw materials sector. Guyana has experienced positive growth almost every year over the past decade. Inflation has been kept under control. Recent years have seen the government's stock of debt reduced significantly - with external debt now less than half of what it was in the early 1990s. Despite these improvements, the government is still juggling a sizable external debt against the urgent need for expanded public investment. In March 2007, the Inter-American Development Bank, Guyana's principal donor, canceled Guyana's nearly $470 million debt, equivalent to 21% of GDP, which along with other Highly Indebted Poor Country debt forgiveness, brought the debt-to-GDP ratio down from 183% in 2006 to 52% in 2017. Guyana had become heavily indebted as a result of the inward-looking, state-led development model pursued in the 1970s and 1980s. Chronic problems include a shortage of skilled labor and a deficient infrastructure.

Suriname's economy is dominated by the mining industry, with exports of oil and gold accounting for approximately 85% of exports and 27% of government revenues. This makes the economy highly vulnerable to mineral price volatility. The worldwide drop in international commodity prices and the cessation of alumina mining in Suriname significantly reduced government revenue and national income during the past few years. In November 2015, a major US aluminum company discontinued its mining activities in Suriname after 99 years of operation. Public sector revenues fell, together with exports, international reserves, employment, and private sector investment.

Economic growth declined annually from just under 5% in 2012 to -10.4% in 2016. In January 2011, the government devalued the currency by 20% and raised taxes to reduce the budget deficit. Suriname began instituting macro adjustments between September 2015 and 2016; these included another 20% currency devaluation in November 2015 and foreign currency interventions by the Central Bank until March 2016, after which time the Bank allowed the Surinamese dollar (SRD) to float. By December 2016, the SRD had lost 46% of its value against the dollar. Depreciation of the Surinamese dollar and increases in tariffs on electricity caused domestic prices in Suriname to rise 22.0% year-over-year by December 2017.

Suriname's economic prospects for the medium-term will depend on its commitment to responsible monetary and fiscal policies and on the introduction of structural reforms to liberalize markets and promote competition. The government's over-reliance on revenue from the extractive sector colors Suriname's economic outlook. Following two years of recession, the Fitch Credit Bureau reported a positive growth of 1.2% in 2017 and the World Bank predicted 2.2% growth in 2018. Inflation declined to 9%, down from 55% in 2016 , and increased gold production helped lift exports. Yet continued budget imbalances and a heavy debt and interest burden resulted in a debt-to-GDP ratio of 83% in September 2017. Purchasing power has fallen rapidly due to the devalued local currency. The government has announced its intention to pass legislation to introduce a new value-added tax in 2018. Without this and other measures to strengthen the country's fiscal position, the government may face liquidity pressures.

GDP (purchasing power parity)$10.24 billion (2019 est.)

$9.72 billion (2018 est.)

$9.306 billion (2017 est.)

note: data are in 2017 dollars
$9.606 billion (2019 est.)

$9.581 billion (2018 est.)

$9.34 billion (2017 est.)

note: data are in 2017 dollars
GDP - real growth rate2.1% (2017 est.)

3.4% (2016 est.)

3.1% (2015 est.)
1.9% (2017 est.)

-5.1% (2016 est.)

-2.6% (2015 est.)
GDP - per capita (PPP)$13,082 (2019 est.)

$12,478 (2018 est.)

$12,005 (2017 est.)

note: data are in 2017 dollars
$16,525 (2019 est.)

$16,634 (2018 est.)

$16,373 (2017 est.)

note: data are in 2017 dollars
GDP - composition by sectoragriculture: 15.4% (2017 est.)

industry: 15.3% (2017 est.)

services: 69.3% (2017 est.)
agriculture: 11.6% (2017 est.)

industry: 31.1% (2017 est.)

services: 57.4% (2017 est.)
Population below poverty line35% (2006 est.)70% (2002 est.)
Household income or consumption by percentage sharelowest 10%: 1.3%

highest 10%: 33.8% (1999)
lowest 10%: NA

highest 10%: NA
Inflation rate (consumer prices)2% (2017 est.)

0.8% (2016 est.)
22% (2017 est.)

55.5% (2016 est.)
Labor force313,800 (2013 est.)144,000 (2014 est.)
Labor force - by occupationagriculture: NA

industry: NA

services: NA
agriculture: 11.2%

industry: 19.5%

services: 69.3% (2010)
Unemployment rate11.1% (2013)

11.3% (2012)
8.9% (2017 est.)

9.7% (2016 est.)
Budgetrevenues: 1.002 billion (2017 est.)

expenditures: 1.164 billion (2017 est.)
revenues: 560.7 million (2017 est.)

expenditures: 827.8 million (2017 est.)
Industriesbauxite, sugar, rice milling, timber, textiles, gold mininggold mining, oil, lumber, food processing, fishing
Industrial production growth rate-5% (2017 est.)1% (2017 est.)
Agriculture - productsrice, sugar cane, coconuts, pumpkins, squash, gourds, milk, eggplants, green chillies/peppers, poultryrice, sugar cane, bananas, oranges, vegetables, plantains, coconuts, poultry, cassava, eggs
Exports$1.439 billion (2017 est.)

$1.38 billion (2016 est.)
$2.028 billion (2017 est.)

$1.449 billion (2016 est.)
Exports - commoditiesships, gold, shipping containers, excavation machinery, aluminum ores, rice (2019)gold, lumber, refined petroleum, fish, cigarettes (2019)
Exports - partnersTrinidad and Tobago 31%, Canada 11%, Portugal 11%, Ghana 8%, Norway 6%, United Arab Emirates 5% (2019)Switzerland 39%, United Arab Emirates 31%, Belgium 10% (2019)
Imports$1.626 billion (2017 est.)

$1.341 billion (2016 est.)
$1.293 billion (2017 est.)

$1.203 billion (2016 est.)
Imports - commoditiesships, refined petroleum, excavation machinery, shipping containers, aircraft (2019)refined petroleum, delivery trucks, excavation machinery, cars, construction vehicles (2019)
Imports - partnersUnited States 26%, Trinidad and Tobago 16%, Singapore 18%, Liberia 11%, China 5%, Norway 5% (2019)United States 22%, Netherlands 14%, China 13%, Trinidad and Tobago 7%, Antigua and Barbuda 5% (2019)
Debt - external$1.69 billion (31 December 2017 est.)

$1.542 billion (31 December 2016 est.)
$1.7 billion (31 December 2017 est.)

$1.436 billion (31 December 2016 est.)
Exchange ratesGuyanese dollars (GYD) per US dollar -

207 (2017 est.)

206.5 (2016 est.)

206.5 (2015 est.)

206.5 (2014 est.)

206.45 (2013 est.)
Surinamese dollars (SRD) per US dollar -

7.53 (2017 est.)

6.229 (2016 est.)

6.229 (2015 est.)

3.4167 (2014 est.)

3.3 (2013 est.)
Fiscal yearcalendar yearcalendar year
Public debt52.2% of GDP (2017 est.)

50.7% of GDP (2016 est.)
69.3% of GDP (2017 est.)

75.8% of GDP (2016 est.)
Reserves of foreign exchange and gold$565.4 million (31 December 2017 est.)

$581 million (31 December 2016 est.)
$424.4 million (31 December 2017 est.)

$381.1 million (31 December 2016 est.)
Current Account Balance-$237 million (2017 est.)

$13 million (2016 est.)
-$2 million (2017 est.)

-$169 million (2016 est.)
GDP (official exchange rate)$3.561 billion (2017 est.)$3.419 billion (2017 est.)
Ease of Doing Business Index scoresOverall score: 55.5 (2020)

Starting a Business score: 85.6 (2020)

Trading score: 58.3 (2020)

Enforcement score: 57.9 (2020)
Overall score: 47.5 (2020)

Starting a Business score: 61.6 (2020)

Trading score: 75 (2020)

Enforcement score: 25.9 (2020)
Taxes and other revenues28.1% (of GDP) (2017 est.)16.4% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)-4.5% (of GDP) (2017 est.)-7.8% (of GDP) (2017 est.)
Unemployment, youth ages 15-24total: 26.5%

male: 20.7%

female: 34.6% (2018 est.)
total: 26.5%

male: 18.7%

female: 39.9% (2016 est.)
GDP - composition, by end usehousehold consumption: 71.1% (2017 est.)

government consumption: 18.2% (2017 est.)

investment in fixed capital: 25.4% (2017 est.)

investment in inventories: 0% (2017 est.)

exports of goods and services: 47.8% (2017 est.)

imports of goods and services: -63% (2017 est.)
household consumption: 27.6% (2017 est.)

government consumption: 11.7% (2017 est.)

investment in fixed capital: 52.5% (2017 est.)

investment in inventories: 26.5% (2017 est.)

exports of goods and services: 68.9% (2017 est.)

imports of goods and services: -60.6% (2017 est.)
Gross national saving10.5% of GDP (2017 est.)

15% of GDP (2016 est.)

8.8% of GDP (2015 est.)
46.6% of GDP (2017 est.)

55.6% of GDP (2016 est.)

53.6% of GDP (2015 est.)

Source: CIA Factbook