US$132 Billion Economy Indicates Accelerated Growth for 2008-09
With an average growth rate of 8.3% since 2001, the economy of Trinidad and Tobago showed a 12.2% growth in 2006, a decline to 5.5% in 2007, but shows indications of renewed acceleration for 2008-09. Prime Minister Patrick Manning indicated that the economy doubled in size from US$55 billion in 2001 to over US$112 billion in 2006, reaching over US$132 billion in 2007. With a population of approximately 1.3 million people, its per capita income increased by almost 100% from 2006, reaching $21,700 in 2007.
Manning said, “We are managing successfully with the worldwide problem of inflation which averaged 7.9% in 2007 and which we must continue to monitor. Over the last six years, we have been able to attract over US$6 billion in foreign direct investment into our country. We have generated thousands of new jobs, and unemployment at the end of 2007 stood at 4.5%. This was the lowest since the attainment of our country’s independence.” The Prime Minister added that this prosperity is permeating all levels of society. “We have reduced poverty levels by half in our country, from 35% in 1990 to 16.7% in 2005.”
Manning also pointed out that there has been tremendous growth in business activity in this country with the non-energy sector contributing increasingly to the Gross Domestic Product (GDP). “The manufacturing sector, for example, expanded by over 50% over the last six years and created over 6,000 new jobs,” he said.
Although the energy sector continues to be the main source of economic growth, expansion and diversification in this sector have resulted in natural gas now playing a most important role. “Today we are the number one exporter of LNG [liquefied natural gas] in the Western Hemisphere, the world’s leading exporter of ammonia and of methanol, as well as a major exporter of direct reduced iron.” Speaking about exports to the United States, Manning explained that in 2006 Trinidad and Tobago accounted for over 70% of all U.S imports of LNG, 75% of all U.S. imports of methanol, and 55% of all U.S. imports of ammonia.
