Economy
From The Report: Trinidad & Tobago 2020
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Trinidad and Tobago, the largest producer of oil and gas in the Caribbean, posted a GDP of $22.6bn in 2019, with growth remaining relatively flat. Though non-oil sectors have not fully shouldered the fall in oil prices, there has been modest growth in certain segments such as distribution and finance. One standout sector has been non-oil-related manufacturing exports, which amounted to $897.7m between January and June 2019, representing a 22% year-on-year rise. While there is a need to diversify the economy away from its dependence on hydrocarbons, a number of new oil and gas discoveries in late 2019 appear set to support a short-term recovery in the energy sector and help finance overall economic expansion. This chapter contains interviews with Philip Knaggs, Chairman, InvesTT; and Aldwyn Wayne, CEO, WiPay.

Articles from this Chapter

Overview

Road to recovery: Diversification and an emphasis on high-value exports to encourage sustainable economic growth
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On the back of elevated global oil prices, the economy of Trinidad and Tobago went through a period of rapid expansion in recent decades, resulting in higher levels of development and overall well-being for the population. While diversification efforts have boosted long-term stability, the economy remains vulnerable to commodity boom and bust cycles. As such, the drop in commodity prices from 2014 to 2016 led to a deep recession in T&T. According to the IMF, the economy shrank by 6.4% in 2016,…

Interview

Point of entry: Philip Knaggs, Chairman, InvesTT, on digital practices and the foreign direct investment (FDI) landscape
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Interview:Philip Knaggs What is the current FDI outlook? PHILIP KNAGGS: Global FDI flows increased by 24% in the first half of 2019, compared to the first half of 2018. However, upon removal of one-off transactions and repatriations due to US tax reforms, global FDI was up 4%. Within the Latin America and Caribbean region, FDI flows decreased by 4%. However, the overall prospects for 2019 remain in line with the earlier prediction of a 5-10% increase in total FDI. The energy sector accounts…

Analysis

Build the base: The new tax authority has proposed to streamline operations, boost taxpayer compliance and raise government revenue
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Following a deep recession and calls both domestically and internationally to boost financial transparency and broaden its tax base, Trinidad and Tobago has moved forward with the establishment of the T&T Revenue Authority (TTRA). While policymakers have long worked to streamline tax collection, the TTRA is the most important step taken by the government to date aimed at closing the gap between potential and real revenue. Existing System The current system has been characterised by weaknesses…

Interview

Next-generation solutions: Aldwyn Wayne, CEO, WiPay, on how technology is advancing revenue management and financial inclusion
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Interview:Aldwyn Wayne What barriers do financial technology (fintech) firms and start-ups face in Trinidad and Tobago? ALDWYN WAYNE: Tech start-ups tend to lack initial capital, and obtaining a licence and funding to become an e-service provider is challenging. Permitting alternative avenues such as sub-licensing would allow smaller companies to test a product in the market without such high levels of capital. In T&T the majority of industries are dependent on the government. Nine out…