No gloomy outlook for the economy: CB Governor

The governor of the Trinidad & Tobago Central Bank said Wednesday the country's fiscal deficit for 2010-2011 budget was about $5 billion compared to the budgeted $7 billion.

And Ewart Williams dismissed suggestions that the economic forecast is gloomy. He stated that in 2012, the economy could recover. 

However he noted that the onus lies with the Government’s ability to implement the Budget, which he said would generate jobs and revive the construction sector. 

“Fiscal policy should take the lead in the economy," he said, adding that so far it has not happened "the way it should.” 

Williams said ff the Government exercises the right fiscal pressure the economy would move back to positive growth of 1.5 per cent with inflation at around five per cent.

He added that the Housing Development Corporation (HDC)’s Colour Me Orange would likely add economic activity to the country. 

Williams said there are some risks from the impact of the performance of the European and US economies. He pointed out the decision signalled by S&P to downgrade 13 European countries is an indication of the state of the international economic environment.

The Governor forecast that the Caribbean will see three per cent economic growth  for 2011, influenced by the resource-rich Guyanese and Suriname economies.