T&T Chamber Optimistic About Economy

• The Trinidad and Tobago Chamber of Industry and Commerce says it remains optimistic about the outlook for the country's economy. The T&T Chamber commented as it issued a release commending Minister of Finance Colm Imbert for his presentation of the Finance (Supplementary Appropriation) (Financial Year 2024) Bill at the Parliament on Friday, June 7.
• The proposed increase in the national budget, with significant allocations to critical sectors such as healthcare, education, infrastructure, and social services, represents a positive step towards fostering sustainable economic growth.
• The allocation of funds to support SMEs (small and medium-sized enterprises) through the SME Development Fund and the focus on digital transformation and renewable energy projects are particularly welcomed by the business community. These initiatives align with the T&T Chamber's strategic direction, the T&T Chamber's release stated.
• Additionally, the emphasis on fiscal discipline and economic reforms to reduce the national debt demonstrates a commitment to long-term financial sustainability. However, the T&T Chamber expressed concerns about the expansion of the fiscal deficit, as articulated by the Minister of Finance.
• The Chamber noted that given the shortfall between the budgeted versus actual hydrocarbon prices, there is a need for fiscal and monetary incentives that will stimulate the growth of the non-energy sectors of the economy.
• The non-energy sector has become the main driver of economic growth, while the mature energy sector continues to struggle. Given this, IMF directors in their latest staff conclusion also emphasized the importance of continued efforts to mobilize revenue, particularly from the non-energy sector. This could be achieved by stepping up the efforts to operationalize the Revenue Authority and the gambling tax along with a comprehensive Value Added Tax (VAT) reform to eliminate extensive zero-ratings, exemptions, and selective tax incentives that could yield substantial revenues.
• Overall, T&T’s economic growth is projected to gain momentum in 2024 and grow by about 2.4% up from 2.1% in 2023, supported by the non-energy sectors and to a lesser extent the energy sector.
(Sources: Trinidad Express Newspapers & NCBCM Research)