Persistent operational bottlenecks like severe foreign exchange shortages, prolonged VAT refund delays, and rising crime continue to choke local business growth, despite a dramatically improved national balance sheet.
This stark reality was highlighted by the T&T Chamber of Industry and Commerce in response to the Minister of Finance’s 2026 Mid-Year Budget Review.
While the Chamber welcomed the country’s positive fiscal trajectory, it warned that macroeconomic stability means very little if it does not translate into real-world business expansion.
“While confidence in the economy is improving, businesses must also experience meaningful improvements in the day-to-day operating environment.
“Improving private sector liquidity should therefore be an immediate priority,” the chamber said.
It urged the Government to prioritise private sector liquidity as it advocated for a structured programme to eliminate the VAT refund backlog—which represents vital working capital for small and medium enterprises (SMEs)—and to accelerate outstanding payments owed to state contractors.
However, it noted that the mid-year review sent one of the strongest fiscal signals in recent years, as revenue outperformed expectations, the fiscal deficit has narrowed, and the primary deficit plummeted from $2.93 billion last year to just $101 million at mid-year.
It added that this turnaround, coupled with an upgraded “stable” outlook from Moody’s and the country’s removal from the European Union blacklist, has significantly boosted investor confidence.
Furthermore, progress in public sector modernisation and digital infrastructure—such as the Tier IV Data Centre—promises a more competitive regional digital economy.
With the energy sector showing positive signs, the Chamber emphasised that long-term prosperity relies on a diversified economy driven by manufacturing, agriculture and digital services.
Meanwhile, the American Chamber of Commerce of T&T (Amcham T&T) has voiced a mixture of optimism and caution following the Government’s 2026 Mid-Year Budget Review and supplementary appropriation presentation, noting several encouraging developments that align with priorities long advocated by the business community.
It welcomed key state initiatives that align with long-standing private sector priorities specifically Government’s focus on digital transformation, the modernisation of the Inland Revenue and Customs and Excise Divisions and efforts to boost energy sector competitiveness.
It noted that these measures have the potential to enhance the ease of doing business and restore investor confidence, adding that progress on reducing national debt servicing expenditure was also highly commended.
However, the chamber raised a flag of caution regarding the proposed TT$2.9 billion supplementary appropriation. Amcham T&T pointed out that this funding is largely heavily concentrated in recurrent expenditure. While acknowledging that these funds cover necessary obligations like public services and social support, the Chamber stressed that such spending does not independently drive economic growth.
Echoing the T&T Chamber of Industry and Commerce, Amcham T&T said it remains eager to see tangible progress on critical bottlenecks, including foreign exchange accessibility, the timely settlement of VAT refunds and flood mitigation.
