Home

Suriname vs. Brazil

Economy

SurinameBrazil
Economy - overview

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.

Brazil is the eighth-largest economy in the world, but is recovering from a recession in 2015 and 2016 that ranks as the worst in the country's history. In 2017, Brazil`s GDP grew 1%, inflation fell to historic lows of 2.9%, and the Central Bank lowered benchmark interest rates from 13.75% in 2016 to 7%.

The economy has been negatively affected by multiple corruption scandals involving private companies and government officials, including the impeachment and conviction of Former President Dilma ROUSSEFF in August 2016. Sanctions against the firms involved - some of the largest in Brazil - have limited their business opportunities, producing a ripple effect on associated businesses and contractors but creating opportunities for foreign companies to step into what had been a closed market.

The succeeding TEMER administration has implemented a series of fiscal and structural reforms to restore credibility to government finances. Congress approved legislation in December 2016 to cap public spending. Government spending growth had pushed public debt to 73.7% of GDP at the end of 2017, up from over 50% in 2012. The government also boosted infrastructure projects, such as oil and natural gas auctions, in part to raise revenues. Other economic reforms, proposed in 2016, aim to reduce barriers to foreign investment, and to improve labor conditions. Policies to strengthen Brazil's workforce and industrial sector, such as local content requirements, have boosted employment, but at the expense of investment.

Brazil is a member of the Common Market of the South (Mercosur), a trade bloc that includes Argentina, Paraguay and Uruguay - Venezuela's membership in the organization was suspended In August 2017. After the Asian and Russian financial crises, Mercosur adopted a protectionist stance to guard against exposure to volatile foreign markets and it currently is negotiating Free Trade Agreements with the European Union and Canada.

GDP (purchasing power parity)$9.606 billion (2019 est.)

$9.581 billion (2018 est.)

$9.34 billion (2017 est.)

note: data are in 2017 dollars
$3,092,216,000,000 (2019 est.)

$3,057,465,000,000 (2018 est.)

$3,017,715,000,000 (2017 est.)

note: data are in 2010 dollars
GDP - real growth rate1.9% (2017 est.)

-5.1% (2016 est.)

-2.6% (2015 est.)
1.13% (2019 est.)

1.2% (2018 est.)

1.62% (2017 est.)
GDP - per capita (PPP)$16,525 (2019 est.)

$16,634 (2018 est.)

$16,373 (2017 est.)

note: data are in 2017 dollars
$14,652 (2019 est.)

$14,596 (2018 est.)

$14,520 (2017 est.)

note: data are in 2010 dollars
GDP - composition by sectoragriculture: 11.6% (2017 est.)

industry: 31.1% (2017 est.)

services: 57.4% (2017 est.)
agriculture: 6.6% (2017 est.)

industry: 20.7% (2017 est.)

services: 72.7% (2017 est.)
Population below poverty line70% (2002 est.)4.2% (2016 est.)

note: approximately 4% of the population are below the "extreme" poverty line
Household income or consumption by percentage sharelowest 10%: NA

highest 10%: NA
lowest 10%: 0.8%

highest 10%: 43.4% (2016 est.)
Inflation rate (consumer prices)22% (2017 est.)

55.5% (2016 est.)
3.7% (2019 est.)

3.6% (2018 est.)

3.4% (2017 est.)
Labor force144,000 (2014 est.)86.621 million (2020 est.)
Labor force - by occupationagriculture: 11.2%

industry: 19.5%

services: 69.3% (2010)
agriculture: 9.4%

industry: 32.1%

services: 58.5% (2017 est.)
Unemployment rate8.9% (2017 est.)

9.7% (2016 est.)
11.93% (2019 est.)

12.26% (2018 est.)
Budgetrevenues: 560.7 million (2017 est.)

expenditures: 827.8 million (2017 est.)
revenues: 733.7 billion (2017 est.)

expenditures: 756.3 billion (2017 est.)
Industriesgold mining, oil, lumber, food processing, fishingtextiles, shoes, chemicals, cement, lumber, iron ore, tin, steel, aircraft, motor vehicles and parts, other machinery and equipment
Industrial production growth rate1% (2017 est.)0% (2017 est.)
Agriculture - productsrice, sugar cane, bananas, oranges, vegetables, plantains, coconuts, poultry, cassava, eggssugar cane, soybeans, maize, milk, cassava, oranges, poultry, rice, beef, cotton
Exports$2.028 billion (2017 est.)

$1.449 billion (2016 est.)
$291.452 billion (2019 est.)

$298.565 billion (2018 est.)

$286.935 billion (2017 est.)
Exports - commoditiesgold, lumber, refined petroleum, fish, cigarettes (2019)soybeans, crude petroleum, iron, corn, wood pulp products (2019)
Exports - partnersSwitzerland 39%, United Arab Emirates 31%, Belgium 10% (2019)China 28%, United States 13% (2019)
Imports$1.293 billion (2017 est.)

$1.203 billion (2016 est.)
$271.257 billion (2019 est.)

$268.237 billion (2018 est.)

$248.961 billion (2017 est.)
Imports - commoditiesrefined petroleum, delivery trucks, excavation machinery, cars, construction vehicles (2019)refined petroleum, vehicle parts, crude petroleum, integrated circuits, pesticides (2019)
Imports - partnersUnited States 22%, Netherlands 14%, China 13%, Trinidad and Tobago 7%, Antigua and Barbuda 5% (2019)China 21%, United States 18%, Germany 6%, Argentina 6% (2019)
Debt - external$1.7 billion (31 December 2017 est.)

$1.436 billion (31 December 2016 est.)
$681.336 billion (2019 est.)

$660.693 billion (2018 est.)
Exchange ratesSurinamese 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.)
reals (BRL) per US dollar -

5.12745 (2020 est.)

4.14915 (2019 est.)

3.862 (2018 est.)

3.3315 (2014 est.)

2.3535 (2013 est.)
Fiscal yearcalendar yearcalendar year
Public debt69.3% of GDP (2017 est.)

75.8% of GDP (2016 est.)
84% of GDP (2017 est.)

78.4% of GDP (2016 est.)
Reserves of foreign exchange and gold$424.4 million (31 December 2017 est.)

$381.1 million (31 December 2016 est.)
$374 billion (31 December 2017 est.)

$367.5 billion (31 December 2016 est.)
Current Account Balance-$2 million (2017 est.)

-$169 million (2016 est.)
-$50.927 billion (2019 est.)

-$41.54 billion (2018 est.)
GDP (official exchange rate)$3.419 billion (2017 est.)$1,877,942,000,000 (2019 est.)
Credit ratingsFitch rating: C (2020)

Moody's rating: Caa3 (2020)

Standard & Poors rating: SD (2020)
Fitch rating: BB- (2018)

Moody's rating: Ba2 (2016)

Standard & Poors rating: BB- (2018)
Ease of Doing Business Index scoresOverall score: 47.5 (2020)

Starting a Business score: 61.6 (2020)

Trading score: 75 (2020)

Enforcement score: 25.9 (2020)
Overall score: 59.1 (2020)

Starting a Business score: 81.3 (2020)

Trading score: 69.9 (2020)

Enforcement score: 64.1 (2020)
Taxes and other revenues16.4% (of GDP) (2017 est.)35.7% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)-7.8% (of GDP) (2017 est.)-1.1% (of GDP) (2017 est.)
Unemployment, youth ages 15-24total: 26.5%

male: 18.7%

female: 39.9% (2016 est.)
total: 27.8%

male: 24.1%

female: 32.6% (2019 est.)
GDP - composition, by end usehousehold 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.)
household consumption: 63.4% (2017 est.)

government consumption: 20% (2017 est.)

investment in fixed capital: 15.6% (2017 est.)

investment in inventories: -0.1% (2017 est.)

exports of goods and services: 12.6% (2017 est.)

imports of goods and services: -11.6% (2017 est.)
Gross national saving46.6% of GDP (2017 est.)

55.6% of GDP (2016 est.)

53.6% of GDP (2015 est.)
12.2% of GDP (2019 est.)

12.4% of GDP (2018 est.)

13.6% of GDP (2017 est.)

Source: CIA Factbook