The International Monetary Fund (IMF) says the economy of Trinidad and Tobago is confronting a major shock with the sharp fall in energy prices that accelerated early this year.

In a statement following the conclusion of a mission from the international lending agency earlier this year, head of the mission Elie Canetti said based on available information, including that of job losses and continued supply-side constraints in the energy sector, the mission projects the Gross Domestic Product (GDP) to fall by one percent this year.

The mission also said declines in energy-based revenues will constrain the Government’s ability to act as an engine of growth.

It added that beyond 2016, new energy projects will modestly boost energy production, while non-energy growth could start to recover, provided there is confidence in the country’s ability to navigate the harsher global environment.

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