UN General Assembly
2018

With regard to our economic challenges and policy measures, my country, as a commodity-based export economy, is highly vulnerable to commodity- price shocks. The sharp downturn in gold and oil prices three years ago and the closure of the century- old bauxite operation in 2016 have led to a sharp recession and a severe loss of Government revenue. The economy contracted by a combined 8 per cent, while the Government lost more than a third of its fiscal revenue in terms of gross domestic product (GDP). That required unprecedented fiscal and monetary policy adjustments in order to stabilize the exchange rate, reduce domestic demand and re-establish a viable balance of payments position. Our monetary authorities moved to a flexible exchange-rate regime and sharply curtailed credit creation in the country. Since October 2016, the exchange rate has been stabilized, monthly inflation rates have fallen to less than 1 per cent, and there is no longer a current account deficit in the balance of payments.