Economic Recovery and Growth in Suriname: A Future-Oriented Approach
SEOB Warns of Vulnerability in Economic Progress
The Suriname Economic Oversight Board (SEOB) has warned that a future-oriented follow-up program with the International Monetary Fund (IMF) is necessary for Suriname to continue on the path to economic stability and growth.
Program Progress and Challenges
The current IMF program is set to end early next year, and the SEOB has reported that the ongoing program has strengthened institutions, improved governance, and ensured a responsible budget policy. According to an IMF delegation, all quantitative targets for the eighth review except the primary fiscal balance target were met. The authorities are taking corrective actions to meet the end-year primary balance target, and structural reforms are progressing with a strong impetus.
The program has contributed to macroeconomic stability and improved fiscal discipline, with economic growth projected to reach three percent this year. Inflation is on a steady downward trend, donor support is increasing, investor confidence is returning, and international reserves are increasing.
Follow-up Program Needed
However, the SEOB warns that this progress would remain vulnerable without a follow-up strategy. A future-oriented follow-up program would not have direct measures for society, but would focus on key institutions and will not have direct measures for households. The SEOB strongly recommends the introduction of fiscal rules to help governments manage their income and expenditures responsibly and promote financial and economic stability.
Fiscal Discipline and Resource Allocation
Fiscal discipline will ensure that long-term economic growth is supported and that there are fewer disruptions. This is particularly important in countries rich in natural resources, such as Suriname, due to the volatility in international oil and gold prices. The need for minimum resource allocation for education, health care, and safety, for example, should also be included in the fiscal rules.
Conclusion
In conclusion, the SEOB’s warning highlights the importance of a future-oriented follow-up program to ensure continued economic stability and growth in Suriname. The introduction of fiscal rules will help governments manage their income and expenditures responsibly, promote financial and economic stability, and support long-term economic growth.
Frequently Asked Questions
- What is the current status of the IMF program in Suriname?
The current IMF program is set to end early next year, and a staff-level agreement has been reached on a review of the economic reform program. - What are the key achievements of the program?
The program has strengthened institutions, improved governance, and ensured a responsible budget policy, contributing to macroeconomic stability and improved fiscal discipline. - What is the SEOB’s recommendation for a future-oriented follow-up program?
The SEOB recommends introducing fiscal rules to help governments manage their income and expenditures responsibly and promote financial and economic stability.
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