TRINIDAD AND TOBAGO Trinidad & Tobago’s economy is estimated to have declined by 6.7% in 2020 due to a reduction in both Non-Petroleum and Petroleum industries. Contraction in domestic aggregate demand occasioned by the coronavirus pandemic, and recession in Caribbean territories, resulting in lower exports, have contributed to the reduction in output in the Non-Petroleum Industry. On the other hand, subdued hydrocarbon prices in H2:20 and supply-side challenges were the primary factors behind the contraction in output in the Petroleum sector.
Unlike some other Caribbean countries, for example, Jamaica, Trinidad & Tobago avoided lockdown in H1:20, as the number of persons who contracted COVID-19 was relatively low. However, inertia in the economy from the previous period, especially in the oil sector, and recession in other Caribbean countries resulted in low growth. The challenges previously noted in the oil sector influenced output H2:20. Both the fiscal and monetary authorities embarked on several initiatives in Q1:20 to help minimise the effect of the impending recession on the citizens and lessen the overall impact on the economy. The Central Bank of Trinidad & Tobago (CBTT) reduced the policy rate and the required reserve for commercial banks. On the fiscal side, the government issued unemployment and food grants. In addition, there were early repayments of tax refunds, and hoteliers in Tobago were given cash to improve their properties. The government also created a $100 million low-interest rate credit facility accessible through the credit union movements.
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