THE Government's decision to resolve repayments to CLICO policyholders after the insurance giant collapsed has increased confidence in the economy, a finance expert at First Citizens Investment Services said yesterday.

Assistant general manager of the company Sana Ragbir said in 2011, "the fact that there was a resolution increased investor confidence" in the country.

Ragbir was speaking at the "Global Market iQ: What will 2012 hold for investors?" seminar hosted by First Citizens Investment Services and business news service Bloomberg at the Hyatt Regency (Trinidad) hotel in Port of Spain.

She said the business community was starting to invest again.

Ragbir also noted that Government's expenditure was expected to increase by $2.7 billion this year, with most of this being spent on the Point Fortin highway project and the plan to repay thousands of CLICO policyholders and investors.

With regard to the country's debt-to-GDP ratio, she said the country was in a good position with "fiscal room".

Challenges to Trinidad and Tobago remained a high dependence on energy revenues and slow reform procedures. —CR