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ECONOMY ::: CARIBBEAN AMERICAN HERITAGE MONTH
IMF: T&T's economy will remain at under one per cent next year caribbeantimes.com
BY CMC public debt and that the current ac- count balance remained in surplus, and while international reserves are trending downwards. The IMF said that reserves are supplemented by substantia 1-25 per cent of GDP-liq- uid assets in the Heritage and Stabi- lization Fund (HSF).
It said that credit growth re- mained steady and the banking sys- tem stayed well-capitalized, under- scoring continued financial sector resilience. Looking ahead, the IMF executive board said inflation is ex- pected to rise temporarily to around 3.1 per cent in 2026, reflecting global commodity price developments, be- fore stabilizing around two per cent over the medium term.
"The overall fiscal deficit is ex- pected to decline to 4.6 per cent of GDP in 2026 from 5.5 per cent in Caribbean Times | June 4-17, 2026
WASHINGTON, DC - The Inter- national Monetary Fund (IMF) says the economic growth in Trinidad and Tobago is projected to remain at around 0.8 per cent in 2026, and will strengthen over the medium term supported by new energy projects and continued momentum in the non-energy sector. The IMF execu- tive board, which has just completed the Article IV Consultation for the Caribbean country, said that eco- nomic activity continued its gradu- al recovery in 2025, with real gross domestic product (GDP) growth moderating to 0.8 per cent and infla- tion returning to low, pre-pandemic levels.
It said at the same time, persistent fiscal deficits led to an increase in JAZZ AT | LINCOLN CENTER
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2025, and international reserves are expected to remain adequate at about 5.5 months of imports.
"Higher energy prices are expect- ed to support fiscal and external balances in the near term, while the authorities' ongoing revenue and ex- penditure reforms, and new energy projects coming on stream underpin a gradual improvement in the fiscal and external positions over the me- dium term, the IMF said.
It noted also that the outlook is subject to significant uncertainty, in- cluding due to the impact of the war in the Middle East. Delays in new energy projects or disruptions to production from mature fields could weigh on growth, while faster imple- mentation of reforms under the Re- vitalization Blueprint and sustained investment could lift medium-term
VERNATION
FUND prudent fiscal and monetary policies and persevere in diversifying the economy and strengthening its resil- ience to shocks. Directors noted that persistent fiscal deficits have led to an increase including by enhancing revenue mobilization, rationalizing spending, and improving invest- ment efficiency, and emphasized that a stronger sustained fiscal consolida- tion effort, while protecting the most Continued on page 31 growth prospects."
The IMF executive board said while it welcomed Trinidad and To- bago's continued economic recovery, low inflation, and healthy banking system, the economic outlook is however subject to elevated uncer- tainty, including through the impact of the war in the Middle East.
The board is encouraging the au- thorities to address underlying mac- roeconomic vulnerabilities through
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