Prime Minister Patrick Manning described as "temporary" the downturn in the local economy, insisting that his government's development programmes would continue.

Addressing a breakfast meeting attended by senior government officials and private sector representatives this week, Manning said that the prevailing socio-economic situation would not hamper plans to have Trinidad and Tobago attain developed country status by 2020.

"My friends, the economic downturn that we are experiencing is temporary in nature. It is not everlasting, it is temporary in nature and that too shall pass," Manning told the meeting.

He said the government would maintain the social safety net while ensuring "that there is support for those in our society who are least able to take care of themselves and lest able to go through this downturn unassisted".

Moving ahead

"We don't lose sight of our premier objective of developed country status by 2020 and we continue to plan and implement the plans we are moving ahead and the show will go on," Manning added.

Last week, Central Bank Governor Ewart Williams warned of further job losses as the economy of the oil-rich twin island republic remained stagnant.

Although Williams painted a gloomy picture of the Trinidad and Tobago economy, he indicated that the country had not gone into a recession.

"Strictly speaking it is not a recession, it is absolutely not a recession, it is a kind of stagnation. I guess that would be the word I would use for no growth, stagnation," Williams told reporters, adding that the local economy was slowing faster than what was initially anticipated.

Exports declined sharply

"The indicators that are available so far suggest that the rate of deceleration of the economy is happening even faster than we anticipated. In the summary indicators we have given you, I point to the slowdown in the energy sector where firms have been closing down, where exports of energy products have declined sharply."

Williams said that there was also a significant reduction in retail sales, a slowdown in construction, adding "so the indication shows that the economy is decelerating sharply".

The central bank governor said that while inflation had dropped in other countries of the Caribbean, it remains at "an uncomfortable level" in this country.

Manning told the breakfast meeting that he would soon be taking steps to investigate the private sector to determine why inflation remained at 11.7 per cent.

Different point of view

"When you look to see what has happened to prices at the international level you ask yourself why it is that is not truly reflected in Trinidad and Tobago. Somebody somewhere in there may have a different point of view from the government."

Manning said he would soon be holding talks with the trade and industry as well as the legal affairs ministers to discuss the situation.

"They are going to begin to engage in discussions with the business community to see exactly where the problem is, who is doing what and to bring the weight of the government ... to bear on driving these prices down consistent with what his happening in the international community," he said.

In his wide-ranging speech, Manning again defended Trinidad and Tobago's hosting of the Fifth Summit of the Americas earlier this month saying that the country was already experiencing returns on the venture.

"So when people talk about the cost of the summit and when some people try to downplay the benefits, only time will tell. It is either have faith or we don't have faith," he said.

Tremendous returns

"We in the government have great faith, my friends, that the approach is one that will bring tremendous returns to our country in due course."

Manning said the state-owned Urban Development Corporation of Trinidad and Tobago (UDECOTT) has had "a number of inquiries" particularly about the Port-of-Spain waterfront where the summit was held.

"Already we have begun to see benefits by the way of the investments we anticipate in Trinidad and Tobago," the PM said.

Trinidad will host another big international conference in November - the Commonwealth Heads of Government Conference.

- CMC