By the Caribbean Journal staff
Trinidad and Tobago’s economy is turning the corner, with growth expected to resume in 2012, according to the International Monetary Fund.
The fund recently concluded its Article IV Consultation discussions with Trinidad.
After contraction of Real GDP in 2011 by an estimated 1.3 percent in 2011, mainly due to disruptions in the country’s energy sector and “lackluster” performance in the non-energy sector, a range of indicators now point to a “broad turnaround,” according to the IMF.
Real economic activity is now expected to increase by 1.7 percent this year as the non-energy sector picks up moment, with the acceleration of government investment and the restructuring of CLICO liabilities, the fund said.
According to a statement, the IMF’s executive board “welcomed” the signs of economy recovery in Trinidad, and commended the country’s authorities for implementing “supportive policies.”
Enhancing competitiveness and promoting economic diversification continue to be important medium term objectives for Trinidad and Tobago, the fund said.
The IMF’s directors also said they supported the country’s 2011/2012 budget, which provides stimulus through an execution of budgeted investment programmes.