International Trade in Suriname

News Related to International Trade in Suriname

Business outline for Suriname

Economic Overview

The country recorded a rather high economic growth in 2008, due to the austerity policy pursued by Ronald Venetiaan's government, which has enabled the stabilization of the economy. The difficulties encountered by the aluminum sector, the global crisis and the drop in oil prices have, however, affected the country's growth in 2009, estimated at 2.5%. In 2010, the country has resumed strong growth of 4%, a trend which should accelerate in 2011.

The smallest country of Southern America after Guyana, this former Dutch colony largely depends on foreign trade. Raw materials represent more than 50% of the GDP and 90% of the export revenues. ALso, the independence treaty foresees an aid of 1.6 billion euro coming from the Netherlands.

Factors that slow down economic growth are fluctuations in ore prices on the world market, the shortage of available energy sources, high public spending, a poor tax collection system, a corrupt civil service and the reduction in foreign aid. To maintain macro-economic stability despite the crisis, the government must durably comit itself to a monetary and fiscal policy. It has started an inflation control and economy privatization program, which is still very much controlled by the State. In Suriname, poverty affects almost half of the population and unemployment is considerable.

FDI in Figures

According to the government, foreign direct investments (FDI) are considered as one of the most important pillars for the country's development. However, in-flow dropped in 2008, as well as in 2009, due to the slowing down of the global economy, a trend that is expected to continue in the coming years.

Amongst the factors that limit FDI inflow to the country are time-consuming bureaucratic processes and the lack of transparency.

Gold, Bauxite, and oil are the main sectors attracting foreign investments. Main investor countries are the United States, Belgium and the Netherlands.

Foreign Trade Overview

Suriname is open to foreign trade. The trade policy aims at liberalizing trade and reducing production costs in the country, by creating a competitive business environment.

Customs duties are not very high. The country has few trade barriers. However, the trade licensing system is outdated and extremely time-consuming, and is an obstacle to trade.

The implementation of a new investment code and legislation on the protection of intellectual property are encouraging trade development factors. Nevertheless, inadequate technical capabilities and the participation of the state in the country