Suriname President Simons Uses Annual Address to Set 2027 Deficit at 4% of GDP

Suriname President Maya-Simeon Simons delivered her annual address to parliament on Wednesday, setting the 2027 deficit at 4 percent of GDP. In her second annual speech, also known as the jaarrede, Simons highlighted the need to prepare for the country's oil sector. The 2027 draft budget anticipates revenue of SRD 70.1 billion (approximately US$1.86 billion) and spending of SRD 80.9 billion (around US$2.15 billion), resulting in a deficit of SRD 10.8 billion (about US$286 million) or 4 percent of GDP, according to financial reports.

Simons' budget allocation includes SRD 55.6 billion for programs and SRD 25.4 billion for operating costs. The president stated that the primary deficit, excluding interest, is near zero in her preliminary figures, which show a primary balance of minus 5 percent of GDP in 2025 and plus 5.2 percent in the second quarter of 2026. Inflation is forecasted at 8.9 percent through July 2026, with economic growth expected at around 3.9 percent for the same year.

Suriname's international reserves have risen to nearly US$2 billion, covering about 8.2 months of imports, described as historic. The president noted that debt stands at 100.4 percent of GDP, surpassing the legal limit of 60 percent, and pledged a steady decline in the debt-to-GDP ratio starting from 2027. Simons disclosed that the government issued two international bonds worth US$1.175 billion in November 2025 and a US$265 million reopening in February 2026.

Most of the borrowed funds refinance older debt, while approximately US$185 million supports urgent projects. Simons emphasized that taxing citizens and businesses heavily is not the sole solution, promising a wider tax base, improved collection, and a stronger customs service to combat smuggling. She also called for increased contributions from gold, timber, and fisheries sectors to the treasury and ordered the closure of gold-mining firms violating regulations.

A Local Content Act, aiming to protect Surinamese workers and suppliers, is expected to be presented to parliament in 2027. The opposition Progressive Reform Party (VHP) protested the venue change for the annual address, arguing that it was organized before the parliament voted on it. Offshore oil production is anticipated to commence in 2028, with 2027 designated as the preparation year.

The president's growth, inflation, and reserve figures are preliminary and have not been confirmed by final data from the central bank or statistics office. The parliamentary approval of the 2027 budget is yet to be determined, as the 2026 budget was only approved on 1 July, halfway through the year it covered.