The Central Bank’s Financial Stability Report 2024 has found Trinidad and Tobago’s financial system remained broadly stable last year. The report, however, identified a cluster of domestic vulnerabilities – heavy bank and insurer exposure to sovereign debt, tighter system liquidity, rising household indebtedness and an increase in cyber incidents – that together raise the risk of materially worse outcomes if shocks occur.
Real GDP expanded by 2.5 per cent in 2024, up from 1.5 per cent in 2023. Unemployment rose to 5.0 per cent while headline inflation averaged 0.5 per cent. At the same time, the central government recorded an overall fiscal deficit of $9.1 billion (5.3 per cent of GDP) for FY2023/24 and adjusted general government debt rose to $140.6 billion or about 81.7 per cent of GDP. Fiscal pressures were partially met through withdrawals from the Heritage and Stabilisation Fund and increased domestic borrowing.
