Since the re-appointment of Ronald VENETIAAN's administration in 2005, Suriname’s economic growth has been steadily increasing. Real growth is estimated at 6.4% in 2006 compared to the 5.2% in 2004. Sectoral contribution thrives from a dominating mining industry, where increases in the development of projects for bauxite and gold mining sectors put the country in better economic standing for 2006.

Political stability was another focal point for the Surinamese development in the 21st Century, where proper management of the monetary and fiscal situation must be especially highlighted. A fiscal surplus estimated at 1.4% of GDP was recorded in 2006, as tax contributions by primary product exporters increased thanks to high prices on international markets. Whilst simultaneously, the monetary authorities adopted an expansionary policy. Interest rates on bonds and local reserve requirements fell from 12.5% to 10%, leading to increases in the maximum value of mortgage loans, and commercial banks were able to raise the flow of credit to the public.

In 2006, large amounts of rainfall triggered flooding in the indigenous communities. Socio-economic displacement was estimated at 20-25,000 people of the interior and rural areas. United Nations ECLAC uses a disaster assessment methodology to estimate the socio-economic impacts of a natural disaster. Official statistics on the affected sectors were difficult to estimate; areas such as the education sector, the number of private and public schools were particularly difficult to capture, as records of the situation prior to the flooding were unavailable.(sources: ECLAC Disaster Assessment, Suriname 2-10 November 2006, Floods in Suriname)

Despite this sudden disaster, the formal economy was scarcely affected due to these communities being mostly self-sufficient (except for the budding tourism sector). With this information on the rural areas, the agricultural sector still expanded by 22%, and the balance of payments also showed developments in alumina and gold exports with a decline in imports. In turn, the country enjoyed their first balance of payments surplus for the first time in five years.

From projections, 2007 seems positive for the country of suriname. Once fiscal operations is controlled and international prices remain at a stable pace, then inflation (which was around 15% in 2005, but improved to 5.6% in 2006) could be controlled and hence unemployment.

This survey examines the macroeconomic performance of selected countries of the Caribbean Development and Cooperation Committee (CDCC) for 2005 and their outlook for 2006.

Throughout the region, countries adopted a conservative monetary stance in order to defend the parity of their currency. Rising interest rates on international capital markets,increasing fiscal deficits in some cases and the effects of rising oil prices on the current account and on inflation prompted the authorities to adopt this policy. The current account position deteriorated for all economies (-9% and –17% of GDP in 2004 and 2005) with the exception of Belize, Saint Lucia and Trinidad and Tobago. The latter was also the only country to record a surplus in its external accounts. The behaviour of the current account responded to the significant increase in the energy bill, higher food prices and the rise in the demand for construction materials.