Modest growth for Trinidad and Tobago

After registering “disappointing growth” in 2012, Trinidad and Tobago is poised for a modest recovery in 2013, the International Monetary Fund (IMF) has said. In a statement, the Washington said the economy is reviving and that maintenance-related outages would continue to hamper the energy sector. It said the non-energy sector should grow around 2.5 per cent and core inflation remains moderate. The IMF said it estimates considerable slack in the economy and that policy should support the economy in the short run. “The overall fiscal deficit is expected to grow to 2.5 per cent of GDP (gross domestic product) in fiscal year 2012/13, which provides broadly appropriate support for growth, along with still-accommodative monetary policy. “Sustainable growth requires reconsidering fiscal policy. Fiscal policy should be placed in the long-term context of the country’s non-renewable resource endowment. A gradual path of fiscal adjustment that allows the economy to enjoy the fruits of its energy sector wealth well into the future is achievable by a combination of revenue reforms and current spending restraint.

Courtesy: www.cananewsonline.com