T&T’S ECONOMY – LOWEST GROWTH IN CARICOM

TRINIDAD and Tobago’s economy is among the worst performing in the Caribbean, a brand-new international report has revealed.

Only Suriname’s economy is doing worse than that of T&T this year, according to the Economic Commission for Latin America (ECLAC).

And only the Bahamas would perform poorer next year, the organisation said.

In its report, ECLAC said that T&T’s Gross Domestic Product (GDP) would grow by 3.2 per cent in 2023.

A similar projection was previously made by the International Monetary Fund (IMF).

The economy of every other Caricom country is performing better this year, with Guyana’s GDP expanding by a startling 25.1 per cent.

The average for the region, excluding Guyana, is 4.2 per cent.

The economy of Antigua-Barbuda is growing by 9.5 per cent this year, Barbados is developing by 4.9 per cent, and Jamaica by 5.3 per cent.

Other Caricom countries doing better than T&T this year are Belize (3.5 per cent), Dominica (3.5), Grenada (5), St. Kitts-Nevis (4.5), St. Lucia (4), and St. Vincent and the Grenadines (4.5).

T&T’s economy is predicted to expand by 2.2 per cent next year.

Guyana’s growth is forecasted at 20 per cent and Antigua-Barbuda at 8.5 per cent.

Barbados is projected to experience a growth of 3.2 per cent, with Belize, Dominica, and Suriname each at 3 per cent.

The expansion for Grenada, according to ECLAC, would be 3.5 per cent, Jamaica at 3.2 per cent, and St. Kitts-Nevis, St. Lucia and St. Vincent and the Grenadines are expected to each have 4.5 per cent growth.

The average GDP advancement for the region is 2.8 per cent.

The performance of the T&T economy is similar to that of some Latin American countries.

ECLAC, an agency of the United Nations, said it is important for the region to “enhance public and private investment.”

But a previous report had indicated that T&T is experiencing a net outflow of direct foreign investments, with more multinationals leaving the country than coming in.

The country’s ease-of-going-business metrics are a disincentive to investments, reports have said.

The economy continues to suffer from the absence of diversification away from the floundering energy sector.

At a time when oil and gas prices are buoyant, the country is getting its lowest yields in a generation, partly as a result of the belated decision to award exploration blocks.

The IMF had acknowledged that the economic growth was based largely on higher global energy prices.

The Government was given credit for strengthening financial integrity and tax transparency frameworks.

But there is high joblessness, a decline in small and medium-sized businesses, growing poverty, and a lack of investments.

Dr. Thackwray Driver, CEO of the Energy Chamber, recently said it can’t be business as usual if the energy sector is to be turned around.

Driver bemoaned the slow pace of getting things done.