Trinidad & Tobago Key Country Views

• According to Fitch Trinidad & Tobago’s (T&T) economy will continue its modest recovery over the coming quarters, supported by rising natural gas production. However, non-energy sector growth will remain tepid, restricted by an overvalued exchange rate and private firms’ poor access to credit.
• The external accounts will remain weak over the coming quarters, as a real interest rate disadvantage vis-a-vis the US drives capital outflows. As a result, the pegged exchange rate will remain under pressure.
• The fiscal deficit will most likely narrow in light of rebounding energy sector revenues. However, public financing needs will continue to strain the domestic financial system.
• A competitive election in 2020 and the political and economic crisis in Venezuela will exacerbate political gridlock in 2019. T&T’s relations with the US will be increasingly strained over the Venezuela crisis and Chinese investment.

(Source: Fitch)