WHILE many people are struggling to make a living in Trinidad and Tobago, the International Monetary Fund (IMF) has managed to praise the Government’s handling of the economy.
“A gradual and sustained economic recovery” and “positive outlook with some uncertainties” are among positive labels the IMF used in its brand-new report on T&T.
“Maintaining fiscal discipline while strengthening the fiscal framework” is another of the agency’s affirmations.
Finance Minister Colm Imbert, thrilled at the report, touted the “fiscal discipline over the last eight years, thus creating the conditions for sustained growth.”
But the IMF failed to note the hardship experienced by large numbers of people, based on high unemployment, ongoing inflation, lack of investments, decline of the energy sector, and absence of diversification.
In its typical style, the multilateral agency dealt with statistics instead of the reality among ordinary people.
And the figures came from the questionable Central Statistical Office.
The report also does not comment on the crime scourge and its harmful effect on the business sector.
The weakening of the small and medium-sized business sector and of the middle class also escaped the attention of the multilateral agency.
So, too, did the absence of domestic investments by large corporations.
“Economic growth is projected to gain momentum in 2024,” according to the IMF, predicting a 2.4 per cent expansion.
But the economy declined for eight straight years before the last two years of marginal growth.
And the agency’s economic projections in recent years have not materialised.
The Government continues to borrow to fund its spending and there is no end to deficit budgets, which means that future generations are burdened with high debt.
There is only fleeting mention of the decline in natural gas production, even though this is a major factor in the economic stagnancy.
Most Point Lisas plants are mothballed, Atlantic LNG operates at just over half its capacity, and energy investors bypass the country.
Still, the IMF hails “additional new natural gas projects.”
The organisation noted the shortfall in foreign exchange but did not comment on the unbalanced distribution, which is feeding a black market and contributing to the collapse of small businesses.
Even though T&T was in the European Union’s tax blacklist, the IMF credited the Government with “strengthening the domestic tax administration in line with international standards…”
“Promoting private sector participation and promoting economic diversification” was another tagline, but the agency did not press the vital urgency of both matters.
There was also tepid mention of “insecurity” in trade logistics, meaning inefficient customs and transport infrastructure.
Widespread corruption and disorganisation in trade operations were ignored in the report.
Generally, the IMF gave economic kudos to the Government that do not line up with the circumstances of the average citizen.
But, in a general election season, Imbert has already interpreted the report as a resounding endorsement of his management of the country’s economic affairs.
We will surely hear much bragging on the subject from the Finance Minister.
With the state of the struggling masses, however, Imbert may have taken “chain up” from the IMF.
