A Monthly Economic Activity Index System for Suriname

Advancements in data collection and data processing techniques revolutionized access and availability of high frequency data in macroeconomics. A large body of literature focusses on these high frequency data advancements in advanced economies. However, small less-developed economies often lack adequate and reliable databases of economic indicators on economic performance on a high frequency basis. Therefore, adequate information with regard to the business cycles and other economic phenomena are often not available for decision-making. This study elaborates on the construction of a Monthly Economic Activity Index System (henceforth MEAI) with survey data for Suriname. Using the System of National Accounts and the International Recommendations for the Index of Industrial Production as references to construct the high frequency indicators (henceforth HFIs), a non-model based approach is applied. This paper contributes to the scanty literature and use of HFIs in a less-developed open economy.