My remarks will focus on recent developments and prospects for the economy of Trinidad and Tobago in 2012. Unfortunately, one cannot fully understand and address the challenges that we are facing unless one appreciates the momentous changes that are currently taking place in the international economy.
Alongside domestic shocks, countries are now more exposed than in the past to external financial shocks and global shocks to confidence. Keeping one’s “house in order” is no longer sufficient to fully insulate domestic economies from these shocks. Third, we need a new approach to international cooperation because the crisis has unveiled structural vulnerabilities in the global economy.