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T&T economy growing at 10% - Energy the driving factor behind 2002-2006 take-off
published: Wednesday | August 22, 2007
The business and industrial district of Trinidad's capital, Port-of-Spain. Prime Minister Patrick Manning said the country's non-energy sector grew annually at six per cent from 2002 to 2006. - Photo by Rosemary Parkinson
PORT-OF-SPAIN, Trinidad (CMC):
The Trinidad and Tobago economy grew at a rate of almost 10 per cent over the period 2002-6, Prime Minister Patrick Manning has said.
Manning, who is also the Finance Minister, said that the economy grew at a high and real gross domestic product (GDP) of 9.7 per cent per year", a position which he said was among "the highest in the world".
"This rapid rate of growth led to a doubling of the economy over the past six years from TT$55 billion (US$9.1 billion) in 2001 to TT$114.5 billion (US$19.03 billion) in 2006 and an increase in per capita income from US$7,100 in 2002 to US$14,790 in 2006."
Manning, delivering the 2008-9 national budget, said that while the energy sector continued to be the main driver of the economic expansion, the non-energy sector surpassed expectations, increasing at an average annual rate of six per cent over the period.
"As a result of the boom in economic activity, an average of approximately 14,400 new jobs were created annually, resulting in a reduction in the unemployment rate from 11.7 per cent in 2001 to five per cent at the end of 2006, the lowest in our nation's history."
But Manning said that such performance also had a negative fall-out since it has resulted in worker shortages in several sectors, which would be filled by labour importation.
Poverty rate from 35 to 16.7 per cent
"Anyone who needs a job today can find one, a situation totally different to six short years ago. It is, therefore, no wonder then that the official data show a halving of the poverty rate from 35 per cent in 1990 to 16.7 per cent by 2006."
Manning said that the island's economic performance had also been helped by the massive influx of foreign direct investment amounting to nearly US$6 billion over the past five years.
"We have maintained overall fiscal surpluses and in so doing we have reduced both our public and external debt.
"Public debt has been lowered from over 60 per cent of GDP to 28 per cent of GDP currently, while external debt which was 17 per cent of GDP in 2001 is now at 5 per cent of GDP.
"Our financial system remains robust and resilient and has emerged as the leader in the region; with oil and gas prices remaining buoyant for most of the period we have been able to maintain stability in the exchange rate and increase our foreign exchange reserves to approximately US$6.5 billion," he added. But he told Parliament that his administration recognised the need to plan for the future and at the end of August this year, the Heritage and Stabilisation Fund had TT$10.9 billion (US$1.81billion) compared with TT$1.015 billion (US$169 million) in 2001.
published: Wednesday | August 22, 2007
The business and industrial district of Trinidad's capital, Port-of-Spain. Prime Minister Patrick Manning said the country's non-energy sector grew annually at six per cent from 2002 to 2006. - Photo by Rosemary Parkinson
PORT-OF-SPAIN, Trinidad (CMC):
The Trinidad and Tobago economy grew at a rate of almost 10 per cent over the period 2002-6, Prime Minister Patrick Manning has said.
Manning, who is also the Finance Minister, said that the economy grew at a high and real gross domestic product (GDP) of 9.7 per cent per year", a position which he said was among "the highest in the world".
"This rapid rate of growth led to a doubling of the economy over the past six years from TT$55 billion (US$9.1 billion) in 2001 to TT$114.5 billion (US$19.03 billion) in 2006 and an increase in per capita income from US$7,100 in 2002 to US$14,790 in 2006."
Manning, delivering the 2008-9 national budget, said that while the energy sector continued to be the main driver of the economic expansion, the non-energy sector surpassed expectations, increasing at an average annual rate of six per cent over the period.
"As a result of the boom in economic activity, an average of approximately 14,400 new jobs were created annually, resulting in a reduction in the unemployment rate from 11.7 per cent in 2001 to five per cent at the end of 2006, the lowest in our nation's history."
But Manning said that such performance also had a negative fall-out since it has resulted in worker shortages in several sectors, which would be filled by labour importation.
Poverty rate from 35 to 16.7 per cent
"Anyone who needs a job today can find one, a situation totally different to six short years ago. It is, therefore, no wonder then that the official data show a halving of the poverty rate from 35 per cent in 1990 to 16.7 per cent by 2006."
Manning said that the island's economic performance had also been helped by the massive influx of foreign direct investment amounting to nearly US$6 billion over the past five years.
"We have maintained overall fiscal surpluses and in so doing we have reduced both our public and external debt.
"Public debt has been lowered from over 60 per cent of GDP to 28 per cent of GDP currently, while external debt which was 17 per cent of GDP in 2001 is now at 5 per cent of GDP.
"Our financial system remains robust and resilient and has emerged as the leader in the region; with oil and gas prices remaining buoyant for most of the period we have been able to maintain stability in the exchange rate and increase our foreign exchange reserves to approximately US$6.5 billion," he added. But he told Parliament that his administration recognised the need to plan for the future and at the end of August this year, the Heritage and Stabilisation Fund had TT$10.9 billion (US$1.81billion) compared with TT$1.015 billion (US$169 million) in 2001.
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