IMF deal may aid economic stabilisation in Suriname

Significance

This is positive news for the country, which experienced a sharp economic decline in 2020 and had been struggling to bolster economic activity for several years before that. New President Chandrikapersad Santokhi will hope that the IMF deal gives his administration some breathing room to enact unpopular economic measures.

Impacts

• Ongoing discussions with China could lead to supplementary aid and financing from Beijing.
• Increased fiscal support will encourage greater investment, especially into the oil sector.
• Greater economic cooperation with Guyana on oil projects will boost the sector's outlook.