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Overview of Trinidad & Tobago John Ries, Economic Section Chief March 11, 2009

Overview of Trinidad & Tobago John Ries, Economic Section Chief March 11, 2009. Area. 5128 sq km Slightly smaller than Delaware. Population/Ethnicity. Population 1.3 Million Ethnic Diversity 40.3% East Indian 39.5% African descent 18.4% Mixed 0.6% Caucasian 1.2% Chinese/Other.

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Overview of Trinidad & Tobago John Ries, Economic Section Chief March 11, 2009

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  1. Overview of Trinidad & TobagoJohn Ries, Economic Section ChiefMarch 11, 2009 Embassy of the United States of America Trinidad & Tobago

  2. Area • 5128 sq km • Slightly smaller than Delaware

  3. Population/Ethnicity • Population 1.3 Million • Ethnic Diversity • 40.3% East Indian • 39.5% African descent • 18.4% Mixed • 0.6% Caucasian • 1.2% Chinese/Other

  4. Religious Diversity • 26% Roman Catholic • 25% Protestant (Anglican, Pentecostal Presbyterian, Baptist, etc.) • 23% Hindu • 6% Muslim

  5. Political Overview • Parliamentary system • President: George Maxwell Richards • Prime Minister: Patrick Manning • Bicameral Parliament • Political Parties • People’s National Movement (PNM) • United National Congress Alliance (UNC-A) • Congress of the People (COP) • Economic Policy Continuity

  6. Economic Overview • 15 years of consecutive real GDP growth • 3.4% in 2008 • 2.0% (projected) in 2009 • Inflation high but easing – 11.7% headline • Exchange rate stability • 10-12 months import cover • Investment grade credit ratings • S&P investment grade risk rating: A- • Moody’s: Baa2 status

  7. Economic Overview • Trinidad • Energy • Financial services • Petrochemicals • Methanol, ammonia, urea • Manufacturing • Iron & Steel • Food & Beverage • Aluminum? • Plastics?

  8. Economic Overview • Trinidad • Target non-energy sectors: • ICT • Maritime/yachting • Food & beverage • Film • Fish & fish processing • Music & entertainment • Printing & packaging

  9. Economic Overview • Tobago • Tourism • Cove Industrial Estate • Natural gas pipeline in 2010

  10. Energy Overview • Oil and gas account for 39.6% of T&T’s GDP and 65% of T&T exports to the US (2007) • Natural gas - leading sector since 1999 • 5th largest exporter of LNG in the world, single largest supplier of LNG to the US • Gas-based industries account for another 32% of T&T exports to the US • Largest exporter of ammonia presently at 4.5 million tons per year • Largest exporter of methanol producing 3 million tons per year for local and foreign consumption • T&T exports iron and steel and has plans to add an aluminum smelter and plastics plants

  11. Trade - Exports • Leading exports • Natural gas & petroleum • Chemicals and Fertilizers (ammonia, methanol, urea) • Iron & steel • Food & Beverages • Value – US $13.8 billion in 2007 (est.) • Down 5% from 2006

  12. Major Export Markets • 71% USA • Leading beneficiary of Caribbean Basin Initiative • 16% CARICOM • T&T accounts for ~80% of intra-CARCIOM trade • Caribbean Single Market and Economy (CSME) • Pushing negotiations with Central America • Proposing accelerated integration with OECS • 5% European Union (incl. UK) • Party to EU-CARIFORUM Economic Partnership Agreement

  13. Trade - Imports • Key imports • Machinery & transportation equipment • Mineral fuels & lubricants • Manufactured goods • Food (cereal, vegetables & fruits, dairy products & eggs) • Volume – US $10.4 billion in 2007

  14. Major Import Partners • 34% United States • 11% Brazil • 10% Germany • 5% United Kingdom • 4% Japan • 3% Venezuela

  15. Public Sector • FY-2009 budget ~US$8 billion • Cut by US$750 million in November • Public Sector Investment Program • State companies plan to spend US$1.8 billion in 2009 • Local content policies proposed but not enacted • Moving toward e-auctions

  16. Economic Crisis: Insulated but not Immune • Limited initial impact • Large foreign exchange reserves • Low debt ratios • Banking sector is well capitalized, limited exposure outside Caribbean • Export revenue down • Implications for mega-projects • CL Financial Bailout – US$1.6 billion?

  17. Outlook • Negative Factors • Energy sector volatility (but better gas than oil) • Crime is on the rise • Political stand-off • Positive Factors • High income – US$14,100 GNI per capita • Macroeconomic stability • Rising visibility – Summit of the Americas

  18. We’re Here to Help • Contact the US Embassy’s Economic Section • Economic Section Chief, John Ries (868) 822–5940, riesjn@state.gov • Economic Officer, Ebony Custis (868) 822–5918, custise@state.gov • Economic Assistant, Wendy Soulette (868) 822–5933, soulettew@state.gov

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