THE Central Bank suggested TT's economy had outshone most of the world last year with a healthy non-energy sector and now seemed set to have a great year ahead based on an ongoing surge in natural gas production, according to the Economic Bulletin for January 2023 issued on Monday.

A table in the report (Summary of economic indicators) said in fiscal 2022 the TT economy had grown by about 4.1 per cent, far ahead of the world (3.4 per cent), advanced economies (2.7 per cent) and emerging and developing markets (3.9 per cent.)

This was reflected in a synopsis titled Overview and Outlook.

"Domestically, economic activity improved in the second quarter of 2022, reflecting a resurgence in non-energy sector performance."

It said Central Statistical Office (CSO) data indicated TT's real GDP grew by 6.6 per cent (year-on-year) in the second quarter of 2022.

"Growth in the non-energy sector was strong at 10.5 per cent, while the energy sector declined by 2.5 per cent."

This came against a backdrop of the Russia/Ukraine war plus fallout from the covid19 pandemic both pushing up global food and energy prices as reflected in global rates of inflation not seen for decades, which many central banks curbed by raising interest rates which dampened business activity and consumer spending.

Despite that, global energy commodity prices remained elevated from July-December 2022, although easing in recent months.

Domestically, the report said TT faced accelerated inflation in 2022, driven by external and local supply-side factors.

"The surge in international food commodity prices, supply disruptions and adverse local weather conditions helped to push headline inflation to 8.0 per cent (year-on-year) in November 2022 – the highest rate since late 2014 – compared to 4.9 per cent in June."

This rise in headline inflation included a 13.8 per cent surge in food inflation plus a 6.6 per cent jump in core inflation.

[caption id="attachment_1001045" align="alignnone" width="1024"] A display of body care products by Scrumptious Organic Care at a Carnival Pop-up Shop, Veni Mange, Ariapita Avenue, Woodbrook on Sunday. Photo by Roger Jacob[/caption]

Unemployment stood at 5.4 per cent by the third quarter of 2023. Official reserves stood at a healthy $6.8 billion, worth 8.6 months of import cover.

Comparing the first quarters of fiscal 2021 and 2022, it said the Ministry of Finance recorded a $2 billion surplus in October-December 2022, compared to a $653.9 million surplus in 2021. "Energy revenue doubled, outstripping the fall in non-energy revenue and the increase in expenditure between these two quarters."

The general government debt fell by about $1 billion, from $129.7 billion in September 2022 to $128.8 billion in December 2022.

In the non-energy sector, the report said, "Even as economic activity picked up and credit growth expanded, liquidity remained ample.

"Private sector credit growth expanded in the second half of 202