Trinidad and Tobago's Economy Faces Uncertainty After Energy Revenue Shocks
Energy revenues in Trinidad and Tobago make up a big part of the economy, but they can be unpredictable due to changes in oil and gas prices. A study looked at how these revenue changes affect economic growth and government spending. Positive energy revenue boosts growth quickly, but doesn't last. Negative revenue hits government spending hard, especially on things like infrastructure. Spending on transfers and subsidies can actually slow down growth in the short term. To help the economy, policymakers should focus on spending in areas that help growth, set clear rules for government spending, and manage windfall revenues better.