'C'bean economies could turn sour'

Published: Friday October 10, 2008

A loss of prosperity within the smaller Caribbean islands as a result of the global financial crisis will affect this country significantly, economist Jwala Rambaran says.

Speaking at the launch of the First Citizens El Tucuche Fixed Income Fund at the Hyatt Hotel in Port of Spain yesterday, Rambaran said as a result of the global financial crisis, many Caribbean economies could "turn sour".

He said despite the fact that Trinidad and Tobago is doing well its financial system has "large exposures to the Caribbean, which accounts for around 20 per cent of total (financial) system assets".

He said, "Stress tests suggest that the impact of a regional crisis would be more felt by our merchant banks and could have a significant impact on parent conglomerates."

Rambaran also said though economic growth within the region has been high, productivity and output still remain below potential and this growth has not "fed into a broader sense of prosperity" within the region.

His statements come less than a week after the United Nation's stated that Trinidad and Tobago's citizens experience a higher level of prosperity and economic happiness than most within the region.

Rambaran said the authorities "at home" cannot afford to ignore the unfolding global realities and the implications of those events for the Trinidad and Tobago economy.

During the launch, several First Citizens Bank representatives also acknowledged the effect the global slowdown and local inflation rate are having on the wealth of citizens.

The company launched the El Tucuche Fund yesterday, which is the latest addition to the family of mutual funds which the commercial bank hosts.


Source: Trinidad Express Newspapers
http://www.trinidadexpress.com/index.pl/article_business?id=161385693