The economic crisis in Sri Lanka has had a significant impact on retired and elderly individuals. An article from The Sunday Times Sri Lanka highlights how this population faces permanent loss from the crisis, as they do not have enough time to recover and adjust their incomes. The average Sri Lankans have lost more than half of their real incomes, resulting in a decrease in purchasing power. The article explains that deflation is worse than inflation from a macroeconomic perspective and emphasizes the need for income growth through investment, production, and employment to recover from the crisis. The author also mentions the broken promises of salary increases for retired individuals and suggests that increasing borrowing or printing more money is not a viable solution. The article concludes by urging people to prioritize sensible economics over opinions and feelings when choosing political leaders.
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The economic situation in Trinidad and Tobago is also a cause for concern. The country has experienced a downturn, with per capita GDP falling from US$22,002 in 2014 to US$17,889.60 in 2021. The labor participation rate (LPR) has also declined significantly, falling from 61.9% in 2014 to 52.2% in 2022, the lowest since the 1980s. This decline in LPR is attributed to demographic influence and the impact of real GDP growth, average weekly earnings, and transfers and subsidies. To address these challenges, the authors of an article from Trinidad & Tobago Express Newspapers recommend several measures, including increasing the retirement age, subsidizing tertiary education, reducing work permit restrictions, reducing transfers and subsidies, and increasing the minimum wage. The article highlights the need for structural changes in the economy to create innovative and globally competitive goods and services, as the current model is constrained by the depletion of petroleum resources and the global move away from fossil fuels. The authors emphasize the importance of knowledgeable and innovative entrepreneurship, highly trained and highly paid labor, and a reduction in subsidies for the new economy. It is clear that both Sri Lanka and Trinidad and Tobago are facing similar challenges in their respective economic crises, and both countries need to implement strategies for sustainable growth.
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