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North & Central America and Caribbean
Trinidad and Tobago |
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Last reviewed: 09 July 2008 |
Country information
ECONOMY
Basic Economic Facts
GDP, 2007 est: US$21.4bn (EIU)
GDP per capita, 2007 est: US$16,462 (EIU)
GDP growth, 2007 est: 5.8% (EIU)
Interest rate, October 2007: 8% (EIU)
Inflation, August 2007: 7.9% (EIU)
Unemployment, 2007 est: 6.5% (EIU)
Key export partners, 2005: US 68.6%, Jamaica 5.4%, Barbados 2.9%, France 0.9% (EIU)
Key import partners, 2005: US 27.2%, Venezuela 13.1%, Germany 13.1%, Spain 3.8% (EIU)
Economically, Trinidad and Tobago is different from other Caribbean countries because of its significant oil and gas reserves. It is currently the fifth largest exporter of liquid natural gas (LNG) in the world and the largest exporter of both ammonia and methanol. It is an important market for BP and BG, who have both made substantial investments in the country.
Estimated GDP for 2006: US$14.7bn; US$19,800 per capita.
The economy is predicted to grow by an estimated 6% in 2008, down from a high of 12% in 2006 and 8% in 2007. This is the thirteenth consecutive year of growth which has seen GDP double in US$ terms and has outpaced the average regional growth rates for more than a decade. The Stabilisation and Heritage fund currently stands at a healthy US$ 6.8 Billion, or the equivalent of 9 months worth of imports. Unemployment dropped to a record low of 6.2% in 2006.
Consumer price inflation has been increasing and at time of writing stands at around 9.8% (it is predicted to be around 10% at the end of 2008). The central bank plans to continue with an aggressive liquidity absorption policy to contain domestic demand and reduce inflationary pressures, with the aim of reducing inflation. The main drivers of inflation are increased wage demands, the global increase in food prices, high government spending on large infrastructure projects.
The energy sector continues to expand with growth in production, exports and exploration, and Foreign Direct Investment (FDI) in the expansion of the Atlantic LNG facility. With new operational facilities shoring up export capacity, and new investment supporting construction activity, real GDP growth is expected to continue. In an attempt to provide incentives for new oil and gas exploration, the government has revised oil and natural-gas production sharing contracts (PSCs), allowing for consolidation of profits and losses in certain deep-water areas and reduces overall tax payments. At current extraction rates, gas reserves will be empty by 2019.
Whilst oil and gas keep the economy strong, the government is aware of its high dependence on earnings from the energy sector and is encouraging diversification into the non-energy sector.
In October 2007, RBTT Financial Holdings Ltd (second largest bank in Trinidad and Tobago) announced it's buy-out by the Royal Bank of Canada for about TT$13.8bn in cash and stocks.
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Travel Advice: Trinidad and Tobago
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Contacts
Address:
42 Belgrave Square
London SW1X 8NT
Telephone:
Fax:
(020) 7823 1065
Email: tthc.info@btconnect.net
Office hours:
Mon–Fri: 0900–1700