Trinidad and Tobago: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Trinidad and Tobago

IMF Staff Country Reports, June 5, 2024

Source details

Canonical URL: Trinidad and Tobago: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Trinidad and Tobago

Real Gross Domestic Product (GDP) is estimated to have expanded by 2.1 percent in 2023, driven by a strong performance of the nonenergy sector.
Economic growth is projected to gain momentum in 2024, supported by both the nonenergy and energy sectors.
Inflation is projected to remain low in 2024.
The current account surplus is estimated at 5.7 percent of GDP in 2024 and is projected to narrow mainly due to a decline in energy prices and energy exports.
International reserve coverage is expected to remain adequate at 7.5 months of prospective total imports.

The nonenergy sector was the primary contributor to the 2023 expansion in real GDP.
Energy sector developments, including lower energy prices and exports, are the main drivers behind the projected narrowing of the current account surplus in 2024.
The report highlights the need for improved quality and timeliness of macroeconomic statistics through enhanced institutional capacity.

Sustain structural reform momentum to secure a more diversified, green, resilient, and inclusive economy.
Foster private sector participation to promote economic diversification.
Accelerate the country’s low-carbon transition agenda to help address issues raised by border carbon adjustments.
Enhance institutional capacity to improve macroeconomic statistics quality and timeliness.

Fiscal policy implications are linked to supporting diversification and green transition efforts while managing the impact of energy-market developments on the current account.
Maintaining adequate international reserve coverage (7.5 months of prospective total imports) is emphasized to support external stability.