Market Conditions 2015 Updated
The local economy currently faces many challenges. There has been a drop in oil prices and the local GDP in addition to increases in the inflation, unemployment and interest rates. It is therefore not surprising that the recent Business Confidence Survey of the Central Bank of Trinidad & Tobago revealed “… a reduction in the general confidence level of the local business community in the first quarter of 2015 with business owners now having a neutral outlook (BCI +14) as opposed to general optimism in the fourth quarter of 2014.” How quickly and efficiently the newly-elected government of Trinidad & Tobago addresses these challenges will no doubt determine the general confidence level of the business community as well as the future direction of the local economy.
It has been stated in the past that the real estate market mirrors the local economy. Within recent times however, residential real estate prices have experienced modest increases, fuelled in part by the amount of money in circulation in the period leading up to the general elections. Nevertheless, given the general pessimism regarding the depressed oil prices and the local and international economic situation, it is expected that the increases in the real estate will cease for the time being.
For ease of reference, please see the graphical summary of the recent performance of some of the main Macroeconomic Indicators below.