Trinidad & Tobago: Economy recovers – expected to grow 2.5% in 2013

After registering “disappointing growth” in 2012, Trinidad & Tobago is poised for a modest recovery in 2013.

The economy of Trinidad & Tobago had contracted at a rate of 1.6 percent over the past four consecutive quarters.

The twin-island nation’s central bank in it’s latest report revealed that the country had seen “slow but steady year-on-year growth” from July 2012 to June 2013, driven by the non-energy sector.

The report further revealed that the non-energy sector would grow around 2.5 percent and the inflation would remain steady. According to the report, “sustainable growth requires reconsidering fiscal policy. Fiscal policy should be placed in the long-term context of the country’s non-renewable resource endowment. A gradual path of fiscal adjustment that allows the economy to enjoy the fruits of its energy sector wealth well into the future is achievable by a combination of revenue reforms and current spending restraint.”