Suri­name econ­omy to con­tract 9% – IMF

Jamaica Gleaner - - BUSINESS -

Fund is pro­ject­ing an economic con­trac­tion of 9 per cent this year in strug­gling Suri­name.

A vis­it­ing IMF team says that with­out ma­jor pol­icy ad­just­ments, Suri­name “risks deep­en­ing in­sta­bil­ity” with sharp ex­change rate de­pre­ci­a­tion and ac­cel­er­at­ing in­fla­tion. It says in­ter­na­tional re­serves are “crit­i­cally low”.

The econ­omy of the South Amer­i­can na­tion has been in a freefall amid col­laps­ing global com­mod­ity prices and the lo­cal cur­rency’s re­sult­ing slide against the US dol­lar.

The IMF is call­ing for tight con­trols on pub­lic wage costs, higher fuel taxes and a phas­ing out of power sub­si­dies. It says a value-added tax should also be put in place by 2018.

Suri­name’s finance min­istry said in a Fri­day state­ment that lo­cal au­thor­i­ties “see the glass as half full rather than half empty.”

Newspapers in English

Newspapers from Jamaica

© PressReader. All rights reserved.