, white, red (quadruple width), white, and green (double
width); there is a large, yellow, five-pointed star centered in the
red band

Suriname Economy

Economy - overview: The economy is dominated by the bauxite
industry, which accounts for more than 15% of GDP and 70% of export
earnings. After assuming power in the fall of 1996, the WIJDENBOSCH
government ended the structural adjustment program of the previous
government, claiming it was unfair to the poorer elements of
society. Tax revenues fell as old taxes lapsed and the government
failed to implement new tax alternatives. By the end of 1997, the
allocation of new Dutch development funds was frozen as Surinamese
Government relations with the Netherlands deteriorated. Economic
growth slowed in 1998, with decline in the mining, construction, and
utility sectors. Rampant government expenditures, poor tax
collection, a bloated civil service, and reduced foreign aid in 1999
contributed to the fiscal deficit, estimated at 11% of GDP. The
government sought to cover this deficit through monetary expansion,
which led to a dramatic increase in inflation and exchange rate
depreciation. Suriname's economic prospects for the medium term will
depend on renewed commitment to responsible monetary and fiscal
policies and to the introduction of structural reforms to liberalize
markets and promote competition. The new government of Ronald
VENETIAAN has begun an austerity program, raised taxes, and
attempted to control spending. the exchange rate has responded by
stabilizing. The Dutch Government has restarted the aid flow, which
will allow Suriname to access international development financing.

GDP: purchasing power parity - $1.48 billion (1999 est.)

GDP - real growth rate: -1% (1999 est.)

GDP - per capita: purchasing power parity - $3,400 (1999 est.)

GDP - composition by sector: agriculture: 13%

industry: 22%

services: 65% (1998 est.)

Population below poverty line: NA%

Household income or consumption by percentage share: lowest 10%: NA%

highest 10%: NA%

Inflation rate (consumer prices): 78% (2000 est.)

Labor force: 100,000

Labor force - by occupation: agriculture NA%, industry NA%, services
NA%

Unemployment rate: 20% (1997)

Budget: revenues: $393 million

expenditures: $403 million, including capital expenditures of $34
million (1997 est.)

Industries: bauxite and gold mining, alumina production, lumbering,
food processing, fishi