CBTT: Trinidad economy continues to mend

THE CENTRAL Bank of Trinidad and Tobago, CBTT, says the country is continuing to experience economic recovery led by nonenergy activity in 2023.

In its latest monetary policy announcement, the CBTT said that the latest data from the Central Statistical Office, CSO, showed that the economy expanded by 3.6 per cent year on-year, during the second quarter of 2023, compared with 1.4 per cent in the previous quarter.

“Indicators monitored by the central bank pointed to a continuation of that trend during the second half of the year, with relatively strong performances in the wholesale and retail and the construction sectors,” the CBTT said, while noting that the CSO also reported a decline in the unemployment rate to 3.2 per cent in the third quarter of 2023, compared with 3.7 per cent in the second quarter.

In its March report on monetary policy, the central bank said headline inflation was 0.8 per cent in February, up from 0.3 per cent in January.

“With core i nflation, which excludes food prices, remaining at 1.0 per cent over these months, food inflation was registered at 0.1 per cent, compared with a small decline recorded in January,” CBTT said.

CBTT opted to keep its policy interest rate steady at 3.5 per cent, saying it was keeping watch on the policy path of major central banks.

“The MPC observed that the Trinidad and Tobago economy continued on a path of steady recovery, supported by good credit expansion. At the same time, inflation remained at less than one per cent and short-term interest differentials, while still relatively wide, have started to narrow,” the central bank said regarding deliberations of the Monetary Policy Committee.

“Taking all these factors into account, the MPC agreed to maintain the repo rate (the rate at which the commercial bank will repurchase the securities from the central bank) at 3.50 per cent. The central bank will continue to carefully monitor and analyse international and domestic developments and prospects,” it added.