Dec 2015 Financial News

T&T officially in a recession

Dec 04, 2015

T&T has suffered its fourth quarter of negative growth and decline is is now officially in a recession, Central Bank Governor Jawala Rambarran announced this morning. A recession is a sustained period of general economic decline defined as a decline in GDP for two or more consecutive quarters.

Speaking at the Fifth Monetary Policy Forum at the Hyatt Regency in Port-of-Spain, Rambarran said the recession was triggered by prolonged supply disruptions in the energy sector resulted in shortfalls in natural gas which in turn adversely affected output of LNG and petrochemicals.

He added: “Lower energy prices also negatively impacted the domestic energy sector. This has already been reflected in job losses at some energy companies. The decision by Arcelor Mittal to idle its steel plant will not only affect energy output but also jobs.”

Rambarran said in recent years the non-energy sector had kept the economy “from veering off its already weak growth trajectory” but seems to have lost its momentum and weakness has crept into key sectors, including distribution and construction.

He said the Central Bank expects the T&T economy to contract by 1 1/2 per cent, in a reversal of the sluggish growth of one per cent recorded last year. The energy sector is expected to contract by more than three per cent and activity in the non energy sector is expected to be flat.

Source:
Trinidad Guardian
Friday December 4, 2015

http://www.guardian.co.tt/news/2015-12-04/tt%E2%80%88officially-recession