Trinidad and Tobago and the World Bank

THE EDITOR: The World Bank's economic expectations this year was a sharp deceleration but mainly for the Caribbean. However, by next year a slight rebound is anticipated of just over one per cent.

In the first half of 2022 there was minimal estimated growth; strong expectations steered by consumption predominantly due to recovering labour markets. In fact, in the second half, a slowdown took effect due to governments' policies of higher interest rates to curb a soaring 50-year record-high inflation.

Investments were forecast to decline due to being weighed down by higher financing costs, much lowered business confidence and various elevated policy uncertainties. Raising interest rates, apart from controlling inflation, might further suppress economic growth, thereby inducing possible stagnation.

To reverse intensifying crises facing development, governments must boost purchasing power of incomes and improve their nations so that they can induce prosperity. One critical step is more investment to create jobs and increase output to kindle growth in consumption.

Second, improvements in the business sector are crucial. Eliminating corruption at all levels, whether government or private sector. Removing restrictions on foreign direct investment (FDI) is a key factor to lowering business startup costs as they enable business and economic growth. Also, the FDI acts as an addition or booster in the event current levels are too low.

CHE AMOROSO

St James