Prudent management of the economy

Published: Wednesday October 8, 2008

A global economic slowdown resulting from the recent crisis in the United States financial sector undoubtedly will adversely affect Trinidad and Tobago. However, Finance Minister Karen Nunez-Tesheira made it clear that T&T today is in a pretty strong position to weather such a storm.

The minister, speaking in Parliament last Thursday, told the nation that the Government recognises that there is going to be a slowdown and noted that the world is not the same place that it was 10 years ago. "If there is a recession there is no question that T&T must be impacted by that but we are in a stronger position than we were 10 years ago," she said.

In separate remarks last week regarding the US financial crisis, Central Bank Governor Ewart Williams said that if there is any lesson in all this, "we can't keep going along saying it's not going to affect us. It is going to affect everybody". His view is that T&T would be affected through the real economy, and the issue now becomes: do we take steps immediately to improve our (economic) resilience?

While this question must be addressed by Government, the Finance Minister has indicated that the developments on the US financial market are being monitored and the Government of Trinidad and Tobago continues to be prudent in its management of the economy.

She summed up by saying: "we do not trade caviar. Our product is one that is still in demand. That is gas and oil but more so gas. Clearly we have gotten it right."

As an energy producer and exporter, Trinidad and Tobago appears well positioned to continue earning significant foreign exchange from its gas and oil exports. However, the Government must guard against the negative effects of spiralling inflation, high expenditure, low agricultural output, a rising food import bill and the declining power of the US dollar.


Source: Trinidad Express Newspapers
http://www.trinidadexpress.com/index.pl/article_business_mag?id=161384838