GNP growth also accelerated sharply from a contraction of 6.1 per cent in 1999 to an expansion of 6 per cent in 2000. However, a severe banking crisis in late November 2000 was accompanied by a massive capital outflow. The crisis was triggered by liquidity problems in some medium-sized banks, which had positioned themselves aggressively for continued declines in interest rates.
So we are not out of the woods. What does all this mean for us in terms of economic management? Because of the uncertainty, countries in the region should: (i)  Further consolidate their fiscal positions. Given Trinidad and Tobago’s fortunate reserve endowment there is a strong case for increasing national savings. (ii)  Continue to reduce their public debt, particularly foreign debt.