Central Bank Gov. Ewart playing ‘words and numbers’ game: Panday

Opposition Leader Basdeo Panday said Wednesday whether the government wants to admit it or not, the country is experiencing the symptoms of a recession.

And he suggested that the central bank doesn't have to wait for the economic definition of a recession to do something about it. In economic terms a recession is three successive quarters of negative growth.

In a news release the former prime minister said all the indicators point to a recession.

“There is a reduction of direct foreign investment, decline in direct local investment, falling business confidence and prolonged high inflation," Panday said, adding that businesses are closing down and the owners are migrating.

"Workers are losing their jobs and wages are frozen. Business operators cannot get foreign exchange at the banks. These are typical symptoms experienced when countries are in recession.

He said so far the governor of the Central Bank has not provided "hard, current data to support his claim that the country is not presently in recession. What and where are the statistics that informed his statement?" he asked.

“The Governor is waiting for at least three Financial Quarters of negative growth before he admits to a recession. This means that by the time he raises his red flag the country would have already been plummeting under recessionary conditions for at least one year and by then it would be too late to spare anyone from falling victim to the recession," Panday said.

Panday noted that in 2006, the Central Bank warning about the dangers of the double-digit inflation came too late. He said, "two and a half years later the country is still struggling to get off the slippery slope."

“The government is hiding behind technicalities and economic definitions to justify their wild and irresponsible spending, Panday said and urged the authorities to behave more responsibly. "The country cannot afford to wait any longer to wake up to the reality,” he said.

Panday noted that in 2006, the Central Bank warning about the dangers of the double-digit inflation came too late. He said, "two and a half years later the country is still struggling to get off the slippery slope."