Despite the Central Bank of T&T’s (CBTT) Q2 Economic Bulletin stating that the deficit had increased to $2 billion, outgoing Finance Minister Larry Howai said yesterday the $2 billion referred to by the CBTT related to the economic outturn at the end of May and not at the end of June. He added that at the end of June, there was a “lower deficit of $1 billion.”
In its Economic Bulletin report July 2015, the CBTT stated: “The Central Government fiscal accounts recorded a deficit of $2,168.1 million during the first eight months of the fiscal year (October 2014 to May 2015) compared to a $1,028.6 million deficit for the comparative period one year earlier.”
But stating that T&T is well below the projected deficit of 2015, Howai, in a statement yesterday, said, “The Government’s revenues normally come in at the end of a quarter and the quarterly statements are the more comprehensive and accurate figures.” The Government has done well in managing the downturn of global energy prices, Howai said.
“Regarding the growth projections the figures used were the growth projections coming out of the various international agencies. The IMF’s growth projection for T&T for 2015 is 1.2 per cent; the World Bank is projecting 1.8 per cent and Moody's and Standard and Poors are also projecting economic growth.”
Regarding foreign exchange, the CBTT said in its report that conditions in the domestic foreign exchange market remained relatively tight in the first half of 2015.
“Over the period January to June 2015, authorised dealers of foreign exchange purchased a total of US$2555.0 million from the public, a 9.7 per cent decline when compared to the same period one year ago. On the other hand, sales to the public by authorised dealers were nine per cent higher on a year-on-year basis at US$3665.5 million in the first half of 2015.”
And referring to T&T’s foreign exchange reserves, Howai said it remained “strong” at approximately 12 months of import cover. Chairman the Clico Policyholders Group Peter Permell, in a statement, maintained that his members would not be paid what is owed to them.
“It is quite clear by now that the People's Partnership Government has absolutely no intention of paying “assenting” policyholders our just due from the Clico Statutory Fund, otherwise they would have done so already since their “promise” to do so on March 27, 2015 (some six months ago). Nonetheless, we must continue to remain ever vigilant and discerning as we enter this new phase in the ongoing fight to get us just due.”
President of TTMA Dr Rolph Balgobin said a slow in the economy is not unusual as many in the business community would want to wait until the election is over to continue any new investment activity.