📉Inflation numbers have dropped to 9.7% from a high of 60.8% in 2020

Happy Monday and Happy Holidays!

This week we cover inflation over the past year, amendments to the tax act in Suriname, and an IMF economic stimulus package.

This year inflation has dropped to 9.7% compared to very very high numbers in Suriname’s recent economic crisis.

• Inflation rose by 9.7% over the past year. Since 2019, it has not dropped below 10%, and at its peak in 2020, it reached 60.8%. These are significantly improved numbers for the country as it continues to recover.

• The Surinamese Dollar has devalued in the past year by 32.6% however.

• According to the General Bureau of Statistics (ABS):

  • Year-on-year: Consumer prices in November 2024 increased by 9.7% compared to November 2023.

  • While Month-to-month: Prices in November 2024 rose by 0.2% compared to October 2024 (data collected from November 1–29).

After several debates, the Tax Authority Act was passed to reform the tax authority with plaudits for increasing tax collection overall.

• The Tax Authority Act was unanimously passed after intense debates and several amendments.

• The act aims to reform the Tax Authority and includes customs initially excluded.

• The law will only take effect after the necessary preparations for the transformation of the Tax Authority are completed.

• The debates brought together different parties and different politicians to pass the reform. Asis Gajadien, the committee chairman highlighted the importance of the step despite imperfections; changes can be made during implementation.

• While Minister of Finance & Planning Stanley Raghoebarsing incorporated proposals from the National Assembly, praised the constructive debates, and thanked members for their contributions.

• Rabin Parmessar, one of the heads of the NDP, noted the shift from establishing a tax authority to including customs after consultations. His party colleague Jennifer Vreedzaam also of the NDP Emphasized the Tax Authority’s role in tax collection under ministry oversight.

• Ronny Asabina of the BEP party called the act a fulfillment of a long-held goal, urging fair treatment of staff and strict enforcement of tax collection.

• The act is seen as a significant step forward, with expectations for fair and efficient tax administration.

The IMF has loaned the Surinamese government, an 8th tranche in its economic recovery which amounts to USD 61 million.

• Suriname has received USD 61 million from the IMF of which USD 20 million is for the Central bank and USD 41 million is for the budget of the Ministry of Finance & Planning.

• Suriname’s debt obligations are USD 21 million which will be repaid to China for old debts this month. While the government also owes SRD 1 billion (approximately USD 28 million) to the Central Bank by the end of the year.

• The obligations for this month are around USD 49 million which surpasses the IMF loan.

• The economy has stabilized and improved since last year. The IMF program is on track, with expectations for successful completion next year. The private sector supports a follow-up program, and a positive response from the IMF is anticipated.

• One of the biggest issues for the government was to meet tax revenue targets and solve problems in customs and taxation. Overall, the government has exceeded tax collection but has underperformed on non-tax revenues collected.

• The economy is seen to be growing with increasing growth and declining inflation. There are also positive outlooks in the medium term, as the Final Investment Decision came in for the oil discoveries which led to happiness for the country’s government.