Economy on the mend; CB "cautiously optimistic" about 2.5% growth for 2013

File: CB Gov. Jwala Rambarran

Central Bank Governor Jwala Rambarran confirmed on Monday that the local economy has improved as he released the Bank’s release Financial Stability Report (FSR) for December 2012.

He said, "The perception of the general public is that economic confidence has increased and the economy has improved. That is a significant improvement and I think that the more good or encouraging news that will filter into the course of this year, the perception will be boosted and that helps to bolster economic confidence."

Rambarran made the comment in reference to a poll conducted by Market Facts and Opinion (MFO) that suggested that almost three in ten saw an improvement—up from two in ten in 2011.

The Bank's own figures show 1.5 per cent economic growth for the third quarter of 2012; in the second quarter there was a 3.6 per cent decline.

Dr Alvin Hilaire, chief economist and director of research at the Bank, gave a preview of the Bank’s Economic Bulletin due for release at the end of the month. He said third quarter results provide “a glimmer of hope”, after several quarters of contraction in the energy sector.

He said increases in natural gas output boosted growth in the sector by 0.5 per cent. Hilaire said there has been about 2.1 per cent growth in other sectors.

The top bankers said they are  "cautiously optimistic" about a 2.5 per cent growth for 2013.