Port of Spain, Trinidad and Tobago: PNM – The People’s National Movement informed the general public about the presentation on Budget 2023-2024, for quarter II, on October 2 (Monday) in Trinidad and Tobago. As per the update, ahead of that day, the Central Bank has released its quarterly report for July 2023.
Furthermore, the PNM shared the summary of the earlier Budget. According to the shared details, the summary of the Budget 2023-2024 for the first half of the year:
- Global growth remained constrained in the 1st half of 2023 amid geopolitical tensions and continued monetary policy tightening to contain inflation.
- Preliminary indicators suggest that domestic economic activity dipped in the fourth quarter of 2022 before improving over the 1st quarter of 2023.
- Headline inflation slowed during the 1st half of 2023 as increases in prices for both food and non-food items eased.
- Central Government’s fiscal position strengthened during the 1st eight months of FY2022/23, underpinned by higher revenues from the energy sector.
- Ample liquidity supported robust credit growth during the 1st half of 2023. Excess liquidity increased to a daily average of $6.2 billion from January to July 2023, compared to $4.4 billion over the same period in 2022.
- The Repo rate remained unchanged at 3.50 per cent during the 1st half of 2023 in support of the domestic economic recovery.
- Gross official reserves amounted to US$6,461.5 million at the end of July 2023, equivalent to 8.1 months of import cover.
Economic activity is expected to improve in 2023, bolstered by activity in both the energy and non-energy sectors. Natural gas supplies should continue to benefit from key upstream energy sector projects, while non-energy sector performance will be driven by increased business activity and the continued resurgence of consumer demand. Headline inflation is expected to continue along a path of deceleration in the short term, driven by easing food inflation.
It further added that, meanwhile, the external impetus to domestic inflation is expected to persist in the short term, stemming from disruptions to global supply chains and high international energy and other commodity prices.
Macroeconomic policy in Trinidad and Tobago will continue to grapple with the challenges of nurturing a solid economic recovery alongside inflationary concerns, according to the update by the political party.