Trinidad and Tobago : 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Trinidad and Tobago

Author/Editor:

International Monetary Fund. Western Hemisphere Dept.

Publication Date:

November 21, 2017

Electronic Access:

Free Full Text. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

Continued low energy prices and three years of recession have significantly widened fiscal deficits. Absent consolidation, fiscal balances and public debt are projected to be on an unsustainable medium-term trajectory. The external balance assessment indicates the currency remains overvalued. Together with low prices and weak output in the energy sector, this has considerably widened the current account deficit. These large current account deficits have been financed by official borrowing, private capital inflows, and some reserve losses, thus starting to rapidly erode a large positive foreign asset position. That said, reserve losses have been limited by the rationing of foreign exchange, which, however, has led to persistent and highly distortionary shortages in the foreign exchange (f/x) market. Monetary policy has been on hold on concerns that lower interest rates would exacerbate pressures in the foreign exchange (f/x) market, where shortages are already widespread.

Series:

Country Report No. 17/352

Subject:

English

Publication Date:

November 21, 2017

ISBN/ISSN:

9781484329948/1934-7685

Stock No:

1TTOEA2017001

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

74

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