INVESTORS FLEEING T&T

… outflow of US $914 m

BUSINESS investors are fleeing Trinidad and Tobago.

The value of US $914 million left last year, according to a brand-new report on foreign direct investment (FDI) by the Economic Commission for Latin America and the Caribbean (ECLAC).

T&T received investments valued at US $1.337 billion but there was an outflow of US $2.232 billion.

In the stunning report, ECLAC revealed that investments in the region grew by 55.2 per cent in 2022.

Total investments in Latin America and the Caribbean were a staggering US $224.579 billion.

Guyana got US $4.389 billion, with 99 percent of international investments being in the hydrocarbon sector.

Much of the investments in Latin America and the Caribbean were in energy, chemicals, manufacturing, technology, automotive, metallurgy, telecommunications, and food and beverage.

But T&T was at the bottom of the barrel, with an outflow of investments.

This is a dramatic fall since investments of an average of US $1.5 billion were received by T&T in each of 2014 and 2015.

Over the past few years, the country has slumped on the World Bank’s ease-of-doing-business metrics, with some routine functions taking several months.

Strong procurement legislation is considered vital in attracting investments.

T&T has been without modern procurement legislation for several years, and the recently-enacted law is currently being amended.

Several analysts, including some business organisations, have described the amendments as a backward step.

Much of the region’s investments came from the United States, Europe, and China.

The Dominican Republic attracted US $4.01 billion, which was 25 per cent higher than in 2021.

The Bahamas (US $1.255 billion), Jamaica (US $319 million), and Belize (US $134 m) were next.

The islands of the Organisation of Eastern Caribbean States received total investments of US 553 million, 20 per cent lower than the previous year.

T&T’s performance put the country behind most Latin American countries.

Brazil was South America’s top performer.

Foreign investments are crucial to developing the productive sector, sourcing foreign exchange, and providing jobs.