TT: Low aggregate demand tamps down inflation – CARICOM Business

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The T&T Central Bank is predicting that for 2022 despite low aggregate demand and spare capacity, rising inflation and inflationary expectations from key source markets & supply chain disruptions for tradable goods will add some upward impetus to prices.

The fiscal deficit is expected to narrow, given increasing revenue collections but debt management remains critical. Meanwhile, the external accounts are slated to benefit from increases in international energy prices and increased external demand for non-energy products.

Despite anticipated continued tightness in the forex market, international reserves are expected to remain resilient.

Extract from the CARICOM BUSINESS Newsletter, Vol 5 No. 19

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