PORT OF SPAIN, Trinidad (CMC) — The Central Bank of Trinidad and Tobago (CBTT) says the local economy remains growth-challenged at present even as it acknowledged that early signs of improvement have appeared in the energy sector, as exploration activity picked up in the third quarter and output of natural gas is expected to rise with the coming on-stream of the Juniper project.

In its latest Monetary Policy Announcement, the CBTT said that growth in energy and energy-related production is expected to eventually pull up activity in other non-energy sectors which is still subdued. “Available indicators on construction and distribution point to continued sluggishness in these areas, while official statistics however suggest that the unemployment rate has remained relatively steady at just under four per cent on average in 2016,” the CBTT added.

The CBTT said that the economic environment in both advanced and emerging economies continues to improve, with generally positive growth being recorded and inflation approaching target ranges, noting that within this context, authorities in some advanced nations have begun to more actively address monetary policy normalization.

In the US, the Federal Reserve will gradually reduce its holdings of securities starting October 2017, and there is anticipation that another hike in the Fed Fund’s rate will occur this December. There are signals that the Bank of England may also increase interest rates within the next few months,” the CBTT said.

It said that in the rest of the world, particularly in Asia, the Middle East and the Caribbean, geopolitical tensions and recent natural disasters have put severe strains on public and private sector economic management.

The CBTT said that the rate of increase in general prices in Trinidad and Tobago has stayed low.

Data from the Central Statistical Office point to headline inflation of just 1.4 per cent in July 2017, with core inflation, which excludes food prices, also at 1.4 per cent.

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