Jul 2010 Financial News

Central Bank predicts rise in jobless rate

Jul 02, 2010

As inflation continues its upward climb, the Central Bank is predicting that unemployment will increase as the T&T economy faces another weak year. This was the grim forecast delivered by Central Bank Deputy Governor Joan John as she addressed the National Centre for Persons with Disabilities (NCPD) 23rd annual general meeting, San Fernando City Hall auditorium on Wednesday night. John said based on preliminary indications, “We expect that the economy will remain flat in 2010 or will remain (with) very slow growth. In other words, the expectation is that 2010 will be another weak year.” She said that given the outlook, “we do expect some minimal increase in unemployment.”

She told reporters that while the slowdown would increase unemployment, “I don’t see rates reaching the high levels that we have seen in the past.” John said the situation was not expected to be “as bad as (we saw) in 2009.” She attributed the increase in the inflation rate to food prices. “The inflation (rate) has been going up and a big driver on the increase in the inflation rate for us in T&T is food prices, and that is affected by weather conditions,” she said. “We had the drought earlier this year, and you know we have the floods, and, so you see the effects when you go to the markets.” On the brighter side, she said that the other parts of the inflationary factors have not been rising.

“We have not seen a rapid increase as (with food prices) and that is a good thing, so what we call our core inflation has not increased by much,” John said. She told NCPD stakeholders that “economic activity in T&T is not as vibrant as it once was and we see in our many everyday occurrence.” “We will get through this and, at some point in time, we will resume positive growth.” The NCPD, in its financial report, stated while its assets grew in the 2009 fiscal year, the organisation recorded a loss. This, in large measure, was due to decreased funding.

John, who commended the NCPD for its continued work, advised the organisation that it was important for members to educate themselves on T&T’s present financial situation. She suggested that the organisation increase the quality of its products. “It is important that as you continue to push Government (for funding)...I encourage you to find alternative sources.” She said the negative growth in 2009 had continued into 2010 and all indications “are the Government’s fiscal position is going to be tough this year.”


Source:
Reshma Ragoonath
Trinidad Guardian
Friday July 2, 2010

http://guardian.co.tt/business/business/2010/07/02/central-bank-predicts-rise-jobless-rate