The Ministry of Finance is watching the United States market given there are signs that “there may be some issues to come”, Deputy Prime Minister and Minister of Finance Peter Turnquest told reporters yesterday.
Turnquest, who spoke to reporters before the weekly Cabinet meeting at the Churchill Building, stressed that the United States economy is still performing strongly at the moment.
But there has been talk across the globe of a looming global recession and the United States’ trade war with China has economists watching world markets closely.
Given these potential downside risks, Turnquest said the Ministry of Finance is ensuring that it “governs ourselves conservatively”.
“The Ministry of Finance is always looking forward to see if we can get a feel for what is going to happen in the global market, because what happens globally, particularly in the North American market, affects us greatly,” he said.
“As we look into the future, I believe the U.S. economy is still performing strongly although there are signs on the horizon that there may be some issues to come.
“As we in the Ministry of Finance make our plans, we take those things into consideration and we try to ensure that we govern ourselves conservatively to take into account the worst case scenario. That means that we have to watch our spending plan to make sure that we are consistent with what we have projected.”
Turnquest said the government always tries to create fiscal headroom in order to meet any unexpected shocks. He said because there are things that cannot be controlled, the Ministry of Finance has to be conservative, responsible “and manage our resources as best we can, taking into account what could happen on the long-term horizon”.