Trinidad & Tobago Central Bank predicts tight belts for 2016

Low oil prices could further affect economy

The Central Bank of Trinidad and Tobago (CBTT) says the persistence of low oil prices on the global markets “suggests that fiscal stimulus to the economy is likely to be severely constrained in coming months.”

In its first Monetary Policy Announcement for 2016, the CBTT noted that crude oil and natural gas production fell during October to November 2015 for the Caribbean country, “with the slippage in gas output in particular continuing to negatively impact the downstream industries.”

In June last year, oil was being sold in excess of US$100 on the global market, but the price has since plummeted to just over US$30, forcing the government to warn about tighter measures to deal with the significant loss of revenue.

The CBTT said “available data over this period also allude to tepid activity in some of the non-energy sectors, most notably distribution and construction.

“Although there have been recent reports of lay-offs across the construction, manufacturing and energy sectors, labor market conditions still appear broadly favorable, with demand for low to semi-skilled workers remaining relatively buoyant.”