Chamber: Decline in GDP not realistic

RESPONDING to Minister of Finance Colm Imbert’s mid-year review, the TT Chamber of Industry and Commerce said the projected decline of 2.4 per cent of GDP (Gross Domestic Product) may not be realistic, given the fall in energy prices and reductions in economic activity compounded by the covid19 crisis.

The Chamber adjusted the budgeted price of oil from US$60 to US$45, and adjusted gas prices to US$2.90 per MMbtu in order to do their own projections, pointing out that even their numbers may be “optimistic.”

The release added that the outlook to rebound to 4.7 per cent in 2021 may be “aggressive” compared to trends in growth in the past, projected energy prices, sluggish global demand and measures that have to remain in place until a vaccine for covid19 is developed.

“Against the current economic backdrop, it is even more crucial that we spend wisely, it is important to have the necessary framework to allow for transparency and accountability of government funds. We believe that the Public Procurement Regulations must be finalised and approved by Parliament, to allow the Act to be fully proclaimed and implemented,” the release said.

Acknowledging that the Finance Ministry mad progress with paying VAT refunds and said they looked forward to the matter being settled.

“The minister did not address the issue of settling arrears to government suppliers, which he committed to in a media release on March 18, 2020. We anxiously look forward to these long outstanding balances being paid expeditiously.” d

In his mid-year review the Finance Minister Colm Imbert projected a 2.4 per cent decline in GDP for 2020 with a growth on 4.7 per cent the next year.