SITA’s First Export Barometer Survey Shows Positive Expectations for Exports in the following 12 months
Paramaribo, December 2024 – The Suriname Investment & Trade Agency (SITA) has released the results of its first Export Barometer Survey. These results show a cautiously optimistic picture of the export and investment climate in Suriname. The survey was conducted between August 27 and October 16, 2024, among 178 companies in the non-extractive sector.
The survey reveals both promising opportunities and important areas for improvement. The Barometer index indicates whether companies expect their exports to increase, decrease, or remain the same in the next 12 months.
Surinamese exporters are generally optimistic about the coming year. A recent survey found that 65% of companies expect export growth and increased foreign income over the next 12 months, while only 16% anticipate a decline. This positive outlook is reflected in an average barometer score of 6.5 out of 10 (where 10 represents the highest level of optimism). Interestingly, this contrasts with the 2023 export figures, which showed a 1% decrease in non-extractive exports. The anticipated growth in this sector could be a key factor in diversifying Suriname’s trade.
This optimism shows the resilience and potential of Surinamese companies, particularly in the services sector. It appears that exporters of services (with a score of 6.7) have higher expectations than exporters of goods (score 6.2). Larger companies (in terms of number of employees) with 250+ employees have higher expectations (with a score of 8.1) than small companies with less than 50 employees (6.1) and medium-sized companies with 50-250 employees (6.8).
Improvement of the business climate in Suriname
Overall, companies have a positive view of the current business climate, with 52% indicating that the business climate has improved compared to 12 months ago and only 25% finding that it has deteriorated (23% indicated that it has not changed). There is also a positive image among foreign investors. 63% are optimistic about the business climate in Suriname compared to a year ago.
The companies have identified obstacles that could hinder economic growth, particularly macroeconomic factors such as inflation and exchange rate fluctuations, corruption, unpredictable policies and uncertain regulations. Nevertheless, the majority of companies indicated that they expect growth in a number of key areas in the coming year, such as turnover (73%), profit (62%) and expansion of the workforce (57%).
SITA Export Barometer Export expectations for the next 12 months
Important Export Trends
The survey shows that 39% of exporters sell their products to countries in the Caribbean and Latin America, while the European Union (30%) and the United States (18%) also remain important markets.
Exporters still dependent on local sales
It is striking that 58% of exporters generate more than 75% of their income from the local market, while only 23% of exporters generate more than 50% of their income from foreign markets. This indicates untapped potential for diversification and export-driven growth.
A Representative Respondent Group
The survey achieved a response rate of 34%, which is well above the national average for comparable surveys. 178 diverse and representative companies participated, including exporters, foreign investors and future exporters from various sectors and company sizes. This ensures that the results provide a comprehensive snapshot of the business climate in Suriname.
Growing Confidence of Foreign Investors
Foreign investors have more confidence in the business climate of Suriname, with an average score of 61.2 (on a scale of 0 to 100). They are more optimistic than exporters, who give an average score of 52.3 to the business climate compared to 12 months ago. This shows that Suriname is increasingly being seen as a promising destination for international trade and investment.
Challenges to Address
Although the survey highlights a number of positive aspects of the export and investment climate in Suriname, it also reveals areas that need improvement. Respondents felt that some issues, such as market access and competition, are generally less urgent concerns. However, challenges related to governance, regulatory efficiency and macroeconomic factors were mentioned as major obstacles to growth. Addressing these challenges will be essential to realize the full potential of Suriname as a dynamic and attractive destination for exporters and foreign investors.
SITA’s Commitment to Progress
Regarding the results of the survey, Amar Alakhramsing, CEO of SITA, says: “This survey is a crucial step to better understand the needs of exporters and investors in Suriname. The results highlight both our strengths and the challenges we need to address to create a competitive and inclusive business climate. At SITA, we remain committed to strengthening partnerships and implementing reforms that can unlock the enormous potential of Surinamese companies.”
SITA is committed to using these insights to promote a stronger and more investment-friendly business climate. The organization will continue to engage stakeholders through semi-annual barometer surveys and will work with policymakers to address challenges, while promoting the unique strengths of Suriname as a gateway to regional and international trade.
SITA expresses its gratitude to all participants for their contribution to this research, which serves as a basis for strategic actions to promote the economic growth of Suriname.
