Despite significant challenges at this time, T&T is still better off than many other countries, even among energy exporting nations, says Trade and Industry Minister Paula Gopee-Scoon.
In her address at the Penal/Debe Chamber's recent Economic Forum, the minister said available mechanisms and resources, if used wisely and equitably, can result in more opportunities for employment, higher wages and increased investment and business.
She said T&T still has enormous strengths, including a well-educated work force, a stable political system, the largest manufacturing sector in the Caribbean, strong financial systems and several exportable service.
Gopee-Scoon, who is part of a panel that included former PP government minister Dr Bhoe Tewarie and economist Dr Roger Hosein, said the Government is not waiting for outsiders to tell them what they are doing wrong.
"We know what needs to be changed, and we have started and we do expect to accelerate our efforts bearing in mind that moving too fast can have deleterious social implications which in the long run will require a greater diversion of scare of public resources," she said.
Gopee-Scoon said since assuming office six months ago, Government has already taken some difficult but necessary steps in the face of sharply lower energy revenues, including the widening the VAT tax base, reducing the number of ministries with a view to streamlining the civil service, and instituting spending cuts.
"The Government has also signalled its intention to not only enhance the efficiency of revenue collections through a revenue authority and expand revenue streams but also rationalise and reverse unsustainable increases in spending on transfers and subsidies over the last several years."
She said notwithstanding that government's tone has changed from the past six months, what has not changed is what they are required to do and how they do it.
"Today, there is absolutely no room for waste and inefficiency. As a government, we are aware of the changes around us.
"We must utilise our resources effectively, work within strict timelines, ensure value for money, and most importantly, ensure that the population understands clearly what we are doing and how it affects them."
Touching on the International Monetary Fund's (IMF) recent assessment of T&T's economic situation, the minister said: "This point of reference allows us to appreciate an objective assessment of our present situation which will duly inform our understanding of T&T within a global context.
"The IMF team acknowledged the shock on T&T's economy as a result of mainly falling energy prices and projected that GDP will fall one per cent in 2016.
"As a consequence, they noted that declines in energy-based revenues will constrain the government's ability to act as an engine of growth, and non-energy growth could start to recover, given the modest boost in energy production.
"Additionally, the report goes on to say that the financial system remains sound, but specific legislation reform has been lagging.
"What remains key to unlocking the country's growth and diversification potential are structural reforms.
"These structural reforms can simply be measures that aim to raise productivity by improving the technical efficiency of markets and institutional structures, or by reducing impediments to the efficient allocation of resources.
"What is important at this time is that we need to assess and administer these reforms ourselves," she said.
Gopee-Scoon acknowledged that supply problems with foreign exchange continues to be one of the more perplexing issues for Government.
"The fact of the matter is that the recent sharp falls in energy prices have reduced the supply of foreign exchange.
"However, since September 2015, the Government, through the Central Bank, has made approximately US$1.1 billion–excluding March 2016 injections–available to authorised dealers.
"The actual distribution of foreign exchange to individual firms is of course the responsibility of individual dealers and banks based on their lending policy.
"The quantum of foreign exchange which has been supplied to the financial system is on par with the previous period–US$1.27 billion during the period October 2014-March 2015 when the average monthly price of oil was US$68 a barrel.
"It may therefore be reasonable to surmise that a great deal of speculative and precautionary motives are putting unnecessary pressure on the exchange rate," Gopee-Scoon said.