Suriname's growth prospects go upwards

Happy Monday!

This week we cover Suriname’s growth in 2025 and further investment in the oil and gas sector.

Suriname grew positively in the year 2025, but the gold sector stays behind.

• The IMF (International Monetary Fund) has reported that Suriname's gold sector is under-performing expectations despite overall economic growth.

• Gold production, according to the IMF, has been negatively affected by smuggling activities and lower-than-expected output.

• The Surinamese economy continued to grow in 2025, with most growth coming from sectors outside mining.

• The non-resource sector expanded by approximately 4.4%, making a significant contribution to economic growth.

• The IMF notes that gold has traditionally been a key source of export earnings and foreign currency for Suriname and lower gold production and exports have negative impacts on government revenues and Suriname’s balance of payments.

• The IMF recommends greater transparency for the gold sector, stronger monitoring of the gold supply chain, and measures to combat illegal activities such as smuggling.

• However, the IMF remains optimistic about Suriname's overall economic outlook, supported by growth in other sectors and the future development of offshore oil resources.

• The IMF emphasizes that Suriname should not rely on future oil revenues; but that improving the management of existing sectors, especially the gold industry, will be essential for sustainable growth and economic stability, particularly before expected oil production begins in 2028.

Reaction from Ministry of Finance and Planning

• Minister of Finance Adeline Wijnerman welcomed the assessment stating results such as lower inflation, a relatively stable exchange rate, and gradually improving confidence in the economy.

• The minister warned that Suriname remains vulnerable to external shocks, including geopolitical tensions, commodity price fluctuations, and uncertainty in global markets.

• A major economic vulnerability remains Suriname's heavy dependence on imports, particularly imported fuel.

• A fuel price ceiling has been put in place to shield residents from international shocks, but this reduces government revenues that could otherwise be used for investment.

• Wijnerman called for faster development of productive sectors such as agriculture and rice farming to increase local production, create jobs, and reduce import dependence and more finance for entrepreneurs.

• Wijnerman stressed that Suriname should not rely solely on the oil and gas sector and should diversify its economy by strengthening sectors such as agriculture, tourism, and entrepreneurship to build long-term economic resilience.

Investment in Suriname’s Oil sector.

• Suriname's new Ministry of Oil, Gas and Environment has allocated SRD $3.393 billion for investments in Staatsolie in 2026 and approximately 99.8% of the SRD $3.4 billion is dedicated to the program "Investments for Staatsolie."

• This is to support onshore oil production, refinery operations, and the energy sector. The ministry has stated that these investments are separate from the offshore GranMorgu project.

• SRD $1.51 million has been allocated to develop a local content policy, aimed at increasing participation by Surinamese businesses and workers in the oil and gas sector.

• Additional funding will support the development of a National Oil and Gas Policy Plan, modernization of petroleum legislation, strengthening of environmental and safety standards, and improving transparency in the sector.

• The budget shows that the new ministry will play a central role in developing Suriname's oil and gas sector, but its overwhelming priority for 2026 is the continued expansion and support of Staatsolie.