Macroeconomic Forecast Trinidad & Tobago

August 2007 | Macroeconomic Forecasts

The continued strength of global energy prices is good news for the fiscal position. The treasury depends on the energy sector for well over half of total fiscal revenues, making it very vulnerable to an external price shock. Fortunately, that does not appear imminent. The 2006-2007 budget was based on a conservative oil price of US$45.0/bbl. With prices significantly higher than that this year, budget spending should remain well underpinned. Thanks to the revenue windfall, the government now has approx. US$1.5bn in the new Heritage and Stabilisation Fund (HSF), while net foreign reserves were US$7.25bn in April 2007, up from

If you would like to subscribe to Caribbean Monitor and gain instant access to this article, please click here to subscribe.

If you would like to take a trial to Caribbean Monitor please click on the trial link below.