VES chairman: “Oil dollars could become a curse if we are not well-prepared”

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The promised oil dollars could bring more harm than good to Suriname if the country is not well-prepared, warns Steven Debipersad, chairman of the Association of Economists in Suriname (VES), in an interview with Suriname suriname. “Oil could turn out to be a curse rather than a blessing,” says Debipersad, highlighting three significant economic events of 2024.
Three significant economic developments in 2024Debipersad first pointed to the Final Investment Decision (FID) for Block 58, made on October 1. “While politicians act as if this will solve all our problems, everything depends on careful planning and a clear long-term development vision and strategy,” he cautions. He stressed that now is the time to focus on these aspects.
The second development he noted was inflation, which is finally expected to drop below 20% after four years of high inflation rates that have severely eroded the purchasing power of the population.
The third point is the exchange rate, which showed an increase in the last quarter of 2024. Within a short period, the rate rose from SRD 28 to SRD 36 per US dollar. “Unlike in the past, there seems to be little media interest in this,” said Debipersad. “The government hosted a talk session on the issue, which offered no solutions and garnered little attention.”
2025: The future of SurinameLooking ahead to 2025, the upcoming election is central to the nation’s expectations. Debipersad views the May 25 election as pivotal for 2025. “Many are optimistic about the government that will take office after May 25, 2025, expecting it to remain in power for a long time due to the oil dollars expected to flow starting in 2028.” However, he warns, “If we fail to prepare our economy, employers, and workers for this, oil could become a curse rather than a blessing.”