b'3MACRO-ECONOMIC ENVIRONMENTDuring the year under review, the world economy experienced a notable turnaround in its performance. Following an estimated 3.1% decline in global output in 2020, growth rebounded to an impressive 5.9% according to recent estimations of the International Monetary Fund. This turnaround was mainly caused by a tentative reopening of the advanced economies after the preceding Great Lockdown. The effects of the Covid-19 pandemic receded. Fiscal and monetary policies remained quite relaxed and supported spending. Consumer demand, particularly directed towards the e-commerce sector, and international trade surged. However, this surge coincided with supply and transport disruptions rarely experienced in modern times. Crude oil and non-fuel commodity prices increased on average by 67% and 27% respectively. Upward price pressures were accentuated by higher freight rates. Not surprisingly, the rise in the Consumer Price Index in these economies accelerated to 3.1% in 2021 up from a mereto persistent difficult social and economic 0.7% in 2020. In the emerging and developingconditions, exacerbated by the effects of the markets inflation fluctuated at higher levels,pandemic. Surinames economy is facing major but its rise was less pronounced; the indexchallenges to recover from the sharp output increased from 5.1% to 5.7%, putting somedecline during 2020 and 2021, which amounted extra pressure on purchasing power, and to an estimated 20% on a cumulative basis. on household poverty.Encouraging progress has been made with The performance of Latin America and theimplementing the countrys homegrown Caribbean was slightly weaker than that ofrecovery program. In essence, the program the world economy, where output grew byaims at:2.8% on balance during the past two years. The aforementioned region succeeded to Restoring fiscal sustainability, bringing compensate for the 6.9% output decline indown central government debt (presently 2020, but on balance its level remained virtuallyamounting to 128% of the GDP) to unchanged. The performance of Surinameacceptable levels.lagged behind the regional average, due 22 STAATSOLIE 2021 ANNUAL REPORT'