IMF Projections Welcomed By T&T Chamber

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IMF Projections Welcomed By T&T Chamber

The Trinidad and Tobago Business Chamber describes as positive news, the projected economic growth by the International Monetary Fund that could inspire confidence in the economy and potentially lead to further investments.

It says while being cautiously optimistic, the reality is that oil and gas prices for the first six months of 2024 have been below the prices on which the 2024 budget was based (US$85 per barrel of oil and US$5.00 per MMBtu for natural gas).

These lower prices, coupled with the fact oil and gas production for the first half of FY 2024 has been 15% and 5% respectively lower than budgeted, highlight the stark reality that unless prudent fiscal measures are undertaken to improve economic conditions, such projected growth may be tempered.

It believes businesses should be financially prudent while focusing on efficiency and innovation integrated into their growth strategy.

Managing the inflation rate is crucial as it directly impacts the purchasing power of consumers and the financial pressures placed particularly on the more vulnerable members of society.

The continuing decline in inflation is a positive sign and indicative of fiscal prudence.

The temporary revenue reductions must be well managed to ensure that the economy successfully recovers in the medium to long term.

To this end, Minister of Finance, Colm Imbert,  indication the value of the Heritage and Stabilization fund remains stable is a promising sign.

The T&T Chamber is optimistic the initiatives outlined in the Mid-Year Review have the potential to positively impact the business community and the overall economic landscape.

It continues to make recommendations to address the challenges to the ease of doing business adding  some of the measures mentioned by the Minister of Finance will lead to increased business opportunities, job creation, and sustainable growth for Trinidad and Tobago.