Today: February 27, 2017, 7:42 am

Report Published: "Trinidad & Tobago Business Forecast Report Q2 2014"

Recently published research from Business Monitor International, "Trinidad & Tobago Business Forecast Report Q2 2014", is now available at Fast Market Research 2014-03-25 20:43:08
Real GDP growth in Trinidad & Tobago will rise to 2.6% in 2014, up from the central bank's estimate of 1.6% in 2013, as the country's energy sector recovers from maintenance delays that weighed on economic activity in Q313. Moreover, low interest rates will continue to bolster household consumption, while public investment in infrastructure will see stronger growth in the construction sector.

A recent spike in violent crime in Trinidad & Tobago indicates that security problems will continue to negatively affect the country's generally robust business environment. Indeed, we believe that crime could continue to rise in the coming months, with the potential to dampen foreign investment and tourist arrivals, weighing on economic growth and further challenging the ruling coalition's popularity ahead of parliamentary elections scheduled for May 2015.

Full Report Details at
- ..

We forecast a widening of T&T's current account surplus in 2014, due to stronger goods exports on the back of a return to full capacity in the energy sector following maintenance projects at key downstream energy plants in 2012 and 2013. Notwithstanding risks stemming from a recent spike in crime, we also believe that foreign investment is likely to increase, narrowing the financial and capital account deficit.

We believe that a moderate acceleration in real GDP growth in Trinidad & Tobago will see the central bank hike its benchmark policy rate by 50 basis points to 3.25% during the second half of 2014 in order to address strengthening demand-side inflationary pressures. Moreover, we believe that the central bank will raise interest rates in order to help shield T&T from an increase in foreign capital outflows as US treasury yields rise.

Major Forecast Changes

We have adjusted our 2013 and 2014 current account forecasts to factor in weaker energy-sector output in H213, owing to temporary maintenance projects at two key downstream plants, although we expect production of liquefied natural gas to return to full capacity by the second quarter of 2014. As such, we forecast a current account surplus of 9.8% of GDP in 2014 (from 10.9%, previously), up from an estimated 8.9% of GDP (from 10.8%, previously) in 2013.

Key Risks To Outlook

T he risks to our interest rate forecast lie primarily to the downside, given that commercial bank loans to incorporated businesses have continued to contract in recent months, which could give the central bank reason to keep interest rates at their current level through 2014. Indeed, while we believe that commercial lending will tick up in 2014 amidst an increase in business confidence as the economy strengthens, there are a number of factors - for instance, the occurrence of a disruptive weather event - that could hinder economic growth and see business lending continue to contract. As such, should inflation remain more moderate than we currently anticipate, we believe that the CBTT may hold the policy rate at 2.75% until business lending returns to positive growth.

About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at

About Fast Market Research

Fast Market Research is a leading distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget.

For more information about these or related research reports, please visit our website at or call us at 1.800.844.8156.

Press Information

Published by
Bill Thompson

# 673 Words
Related Articles
More From Business
Batelco selects Ericsson for mobile network enhancement
Batelco and Ericsson sign the biggest network deal to provide the latest innovative technologies to Bahrain customers including LTE-Advanced [..]
Ericsson brings power of cloud to network [..]
Ericsson Network Manager as a Service helps operators with predictable total cost of ownership for network management and enables [..]
Flowserve to Present at Gabelli's 27th Annual [..]
DALLAS, February 24, 2017 - Flowserve Corporation (NYSE:FLS), a leading provider of flow control products and services for the [..]
MPLX LP files 2016 Form 10-K
FINDLAY, Ohio, Feb. 24, 2017 - MPLX LP (NYSE: MPLX) today announced it has filed with the U.S. Securities and [..]
ATOS : Monthly information relating to the [..]
Information mensuelle relative au nombre total de droits de vote et d'actions composant le capital social Monthly information relating [..]

Disclaimer: If you have any questions regarding information in this press release please contact the company added in the press release. Please do not contact pr-inside. We will not be able to assist you. PR-inside disclaims the content included in this release.