It is alleged that T&T is in the midst of a recession.
The person making that call is an outgoing financial expert. It bears a strong resemblance to someone being given out in a game of cricket, taking the bat home with him and saying the field is not good to play the game anymore.
Why did he not warn us prior to its impact if he was so aware?
Politicians are really strange bedfellows.
What is a recession? Basically, a recession is a general slowdown in economic activity. Investment spending, household income, business profits and inflation fall while bankruptcies and the unemployment rate rise.
What causes a recession? Policy failures cause recession.
What are we going to do?
Firstly, do not worry. We have endured recessions before and survived.
Look for support from the non-energy sector, the manufacturing sector and the agricultural sector.
DO NOT co-sign a loan, take an adjustable rate mortgage, add debt, take your job for granted or take any risks with investments.
We must all pay extra attention to spending, budgeting and be wary of taking any unnecessary risks.
We need to be proactive to plan ahead of a recession.
No matter what happens we must be prepared.
What should one do in a recession?
Review your financial model. Look at your income and expenditure. Try to maintain profitability and sustainability. Develop a strategy for maintaining your income. Take prudent, calculated risks and prepare for the very real possibility of job loss.
Preparing for the worst is always a good idea, but the worst may never happen.
It could already be too late.
This is not a PNM problem or a UNC problem but a T&T problem.
AV Rampersad
Princes Town