From the onset of the recession, we at the T&T Chamber were adamant that it could not be “business as usual” in 2016.
As it stands, GDP estimates show a decline of 6.7 per cent for the first six months of the year.
Our economy has traditionally garnered most of its prosperity from energy revenues, and it is troubling that these figures continue to remain lower than the pre-2014 highs.
Internationally depressed oil and natural gas prices coupled with T&T’s rapidly declining rates of production of these hydrocarbon resources have had negative spill-over effects on the non-energy economy.
We hope to experience some reprieve in the natural gas sector as new production from the Juniper Gas Development Project is expected to start by mid-2017. Tax revenue from this project should improve the economy’s fiscal and current account position toward the end of 2017.
Accessing foreign exchange has proven to be challenging for businesses and consumers alike, again stemming from the fall in energy revenues.
Commercial banks have had to limit the sale of foreign currency on a monthly and even daily basis. While it appears that these shortages may continue into Q3 of 2017, we anticipate that foreign exchange may become more accessible toward the end of 2017.
As a countering measure, the T&T Chamber plans to embark upon a series of initiatives to help businesses build capacity and capability in exports, to earn their own foreign exchange.
February 2017 marks the new deadline for the passage of the Tax Information Exchange Agreements Bill 2016. The business community again implores Government and the Opposition to resolve matters to allow for T&T to become FATCA-compliant. Without properly enacted legislation, the consequences to banks, ordinary citizens and the national economy are potentially damaging.
Not only do local financial institutions risk being blacklisted on the global financial system, but non-compliant countries face erosion of their competitive advantage, thereby negatively impacting the economy.
We anxiously await the outcome when debate resumes in Parliament come January 6 next year.
The T&T Chamber has repeatedly lobbied for the expansion and upgrade of the existing air bridge between Trinidad and Tobago.
Our National Budget Recommendations (NBRs) for the past three fiscal years have appropriately addressed this challenge. This upgrade has become central to the survival of our tourism product.
Among other concerns, the easing of international tensions between the United States and Cuba is anticipated to shift tourism patterns away from traditional Caribbean markets to Cuba.
Tourist arrivals in Cuba have demonstrably increased this year by some 12 per cent (y-o-y). Therefore, Tobago requires urgent and targeted interventions if we are to compete in this prevailing environment. Decisive action is needed by the State to reposition Tobago.
Finally, all efforts would be to no avail if we do not devote determined action to increasing crime detection rates in T&T, while enforcing existing laws. Crime and criminal activity remain overwhelmingly high despite yearly increases in national security budgetary allocations. Value in government spending must be realised.