Trinidad´s Central Bank Forecasts Double-Digit Growth in 2006

In its prospects for 2006 the Central Bank of Trinidad and Tobago says the local economy can expect a real Gross Domestic Product Growth of just over 10 percent for the next 12 months.

It says this is mainly on the strength of the country´s energy sector. The Bank notes that the main driving force will come from the first full year of production of Atlantic LNG´s Train 1V and increased ammonia and methanol production.

Continued expansion of activity in public sector construction will result in further non-oil energy growth. The Central Bank of Trinidad and Tobago Bank has also warned that the extent to which food prices in the country are allowed to increase will be reflected in terms of headline inflation.

Among the main challenges the bank says it will continue to target an inflation rate of no more than 5 percent in the face of its monitory policy and a possible increase of interest rates.

The bank adds that it will seek to maintain its commitment to increasing foreign exchange sales to commercial banks within a framework of greater exchange rate flexibility.