Domestically, economic activity declined in the first quarter of 2021 in Trinidad and Tobago due to reduced output in both the energy and non-energy sectors.
This is one of the highlights indicated by the Central Bank in its Economic Bulletin for July 2021.
It says global economic activity continued to recover during the first half of 2021, despite intensification of the COVID-19 pandemic in some countries.
The bulletin says headline inflation remained muted during the first six months of 2021, reflective of subdued domestic economic activity.
However, food prices have begun to inch up.
The bulletin says short-term economic outlook for Trinidad and Tobago will be directly impacted by the virus’ path and the domestic response.
It says if sustained, the gradual relaxation of restrictions on movement and business activity from August could see, by the end of 2021, a meaningful recovery of non-energy output lost during the first 2 1⁄2 quarters of the year.
Overall, and in light of the uncertainties regarding the evolution of the pandemic globally and locally, scale, monetary and structural policies will continue to play key roles, supported by private sector actions.
The bulletin says gross official reserves stood at US six billion, six hundred and forty –nine point two million dollars – an import cover of 8.1 months- at the end of July 2021.