The Report: Trinidad & Tobago 2020
Trinidad and Tobago is the largest producer of oil and gas in the Caribbean; however, like many hydrocarbon-producing nations worldwide, the slump in global energy prices beginning in 2014 negatively affected broader growth. 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 lend financing to the wider economy.
Country Profile
The twin-island nation of Trinidad and Tobago is located in the southern end of the Caribbean, just off the coast of Venezuela. Its rich and varied heritage lends itself to a vibrant society and cuisine derived from an array of ethnicities and religions. Developmentally, the World Bank categorises T&T as a high-income country, and it has the fourth-highest GDP per capita in the Americas in terms of purchasing power parity after the US, Canada and the Bahamas. T&T is the largest producer of oil and gas in the Caribbean; however, like many hydrocarbon-producing nations worldwide, the slump in global energy prices beginning in 2014 negatively affected broader growth. Nevertheless, the situation has provided renewed political momentum towards greater economic diversification as a means of ensuring sustained development. This chapter contains a viewpoint from Keith Rowley, Prime Minister of Trinidad and Tobago; and an interview with Tijjani Muhammad-Bande, President, UN General Assembly.
Explore chapterEconomy
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.
Explore chapterBanking
In the face of economic sluggishness in 2019, Trinidad and Tobago’s banking sector showed continued consolidation and resilience. As the sector plays an increasingly critical role in the country’s diversification progress, executives are focused on supporting small and medium-sized enterprises. In the near term, domestic banks are seeking to hone their competitive edge and enhance their capacity for dealing with digitalisation as personal finance needs evolve. Overall, releasing the potential of non-energy sectors via structural reforms will pave the way to develop an economy equipped with greater financial clout. Increasing the ease of doing business, reducing administrative and unproductive barriers to investment, and assuming better flexibility in response to rising global competition would also aid the country in fostering durable growth over the longer term. This chapter contains interviews with Nigel Baptiste, CEO, Republic Financial Holdings; and Ronald Carter, CEO and Chief Country Officer, JMMB Bank TT.
Explore chapterCapital Markets
The decade closed with an uptick in activity in Trinidad and Tobago’s capital markets, largely due to increases in initial public offerings, a series of mergers and acquisitions, and a number of bonds issued in the latter half of 2018 and into 2019. Even so, activity in the financial markets remains muted, a pattern seen across many bourses in the Caribbean. The local market tends to be highly concentrated among a few large firms and lacks substantial participation from smaller companies. A drive to boost the participation of citizens and small and medium-sized enterprises in equity markets may bring forth renewed dynamism and interest in the Caribbean’s largest capital market, especially when considered against the backdrop of an overall economic recovery. This chapter contains a viewpoint from Gregory Hill, Managing Director, ANSA Merchant Bank.
Explore chapterInsurance
Trinidad and Tobago’s insurance industry has persevered through recent economic struggles and recession. With GDP forecast to expand in 2020 and 2021 and demand for health and life products rising, T&T’s insurance sector exhibits strong potential and its performance expected to improve further. The proliferation of digital offerings will ensure that a larger customer base receives better service and personalised options. Local insurers report needing more information to make assessments, and as such it will be important to make more data available while respecting privacy concerns. Other challenges include a shortage of foreign exchange, a lack of reliable data and wider macroeconomic pressures. However, consolidation, innovation, the rise of insurance technology and digitalisation are expected to strengthen the sector. This chapter contains an interview with Ravi Tewari, CEO, Guardian Holdings.
Explore chapterRegional Relations
Given its strategic location at the southernmost point of the Caribbean, Trinidad and Tobago serves as a nexus between the island nations to the north and its neighbours on the South American mainland. It has been part of CARICOM since its inception in the 1970s and according to the IMF, the region’s economies are expected to grow by 2% in 2019 and 2020, supported by economic expansion in the US and recovery from the 2017 hurricanes. Improving economic performance, integration and collaboration in sectors such as energy have put the Caribbean in an advantageous stead. Policies that centre around the regional harmonisation of regulatory procedures will likely prove important in reducing barriers to increased social integration and intra-regional trade. This chapter contains an interview with Allen Chastanet, Prime Minister of St Lucia.
Explore chapterEnergy
Hydrocarbons have long been the primary driver of Trinidad and Tobago’s economy. Indeed, T&T is the largest oil and gas producing country in the Caribbean, with the energy sector contributing around 45% to GDP, according to the Ministry of Energy and Energy Industries. The new oil and gas discoveries made in 2019, along with new investment pledges by major international operators in the country’s upstream sector, appear set to support a short-term recovery in the energy sector. Furthermore, the country’s scheduled deepwater auction in 2020 is expected to attract investment. Nevertheless, faced with an increasingly competitive international market for its energy commodities, more will need to be done to ensure the continued recovery of the sector. This chapter contains interviews with Claire Fitzpatrick, Regional President, BP Trinidad and Tobago; and Mark Loquan, President, National Gas Company of Trinidad and Tobago.
Explore chapterIndustry & Retail
Industry and retail, once the focus of diversification efforts, represent important possible revenue generators in their own right. Trinidad and Tobago is one of the larger exporters in the Caribbean region, with total exports for the year to September 2019 amounting to $24.7bn. In an effort to generate foreign exchange, companies are being pushed to increase exports. Significantly, the government also hopes to double manufacturing output between 2020 and 2025. The future for industry is therefore relatively bright despite a number of challenges. The retail sector has been impacted by the national economy’s recent period of slow growth, with consumer behaviour, including reduced consumption and evolving spending patterns, accounting for shortfalls in an otherwise promising sector. However, with new investments and growing penetration of large retailers in the region, the sector is in good health. This chapter contains interviews with Dominic Hadeed, Managing Director, Blue Waters; and Gervase Warner, President and Group CEO, Massy Holdings.
Explore chapterConstruction & Real Estate
Following a period of subdued activity, a steady flow of projects in 2019 has seen Trinidad and Tobago’s construction industry return to healthier growth. Construction activity still remains confined to a small number of projects, which are largely driven by public sector spending. Nevertheless, major developments such as the TAB airport extension, road network upgrades and housing construction initiatives should help the sector to recover, particularly with a slightly higher state budget in 2020. There are signs of recovery in the real estate market, particularly as the need for long-term, affordable housing continues to drive the lower end of the property market. In order for the residential segment to see healthy growth in the years ahead, both the public and private sector will need to ensure that this demand is adequately met. This chapter contains interviews with Jean-Paul de Meillac, CEO, Terra Caribbean; and Emile Elias, Chairman, NH.
Explore chapterICT
Drawing on its potential as a services outsourcing centre, Trinidad and Tobago’s ICT sector remains a key contributor to the islands’ economy. In 2018 the telecommunications and broadcasting sector contributed around 3.7% to GDP. Revenue was generated primarily through software development, web design, data processing and training. Looking ahead, regional headquartering, research and development, business process outsourcing and cybersecurity remain key areas open to further development, especially as T&T seeks out private sector investment from around the globe. Adding to its prospects, T&T possesses the best ICT infrastructure in Latin America and the Caribbean, and ranks second in the region in terms of skills readiness among workers. This chapter contains an interview with Kirk Henry, CEO, iGovTT.
Explore chapterTransport & Logistics
Trinidad and Tobago’s small size and strategic location in the Caribbean makes it well positioned to serve as a regional transport and logistics hub. However, the country has faced challenges in improving its connections to both surrounding nations and wider global markets. On the domestic level, an increasingly diversified economy will require an upgrade of the country’s road infrastructure and internal connectivity in order to facilitate the growth of non-oil sectors such as agriculture and tourism. While government oversight in the form of infrastructure investment will remain crucial, the role of private operators will also form an important part of the sector’s development. The ongoing efforts to improve and expand the road network will prove crucial to boosting socio-economic growth in rural areas and, as a result, enhancing the county’s wider diversification strategy. This chapter contains an interview with Ashley Taylor, President, Point Lisas Industrial Port Development Corporation.
Explore chapterTourism
With the ingredients of a typical Caribbean sun, sea and sand destination, an ecotourism centre and MICE gathering point, Trinidad and Tobago has significant potential to develop its tourism sector further. After a slow start following the creation of two organisations that will promote the islands as independent but culturally interconnected international destinations, progress is starting to be seen. Investment in hotel infrastructure by established global operators and the construction of a new terminal at ANR Robinson International Airport in Tobago is also hoped to spur additional foreign investment. Furthermore, the development of niche tourism through sporting events and ecotourism is likely to attract a new market of travellers looking for something beyond the traditional beach-centric model. This chapter contains an interview with Randall Mitchell, Minister of Tourism.
Explore chapterHealth & Education
Investment in the construction of several new health care facilities across the country and the upgrade of ageing infrastructure demonstrates that the public sector is on the right path. However, challenges persist as out-of-pocket spending remains high, partly due to elevated medicine costs. Moreover, greater funds will have to be invested in the training of medical professionals if locals are to fill staffing gaps. Public investment in the education system remains the highest of any sector, while student enrolment across universities and vocational institutions has increased significantly over the last decade. However, slow economic diversification and the oversaturation of certain university programmes have led to a mismatch between graduate skills and the availability of opportunities in the labour market. Focused government funding could encourage the uptake of subjects and the development of skills required in the contemporary labour market. This chapter contains an interview with Gillian Paul, President, College of Science, Technology and Applied Arts of Trinidad and Tobago.
Explore chapterAgriculture
Agriculture still lags behind other sectors and continues to be overshadowed by the energy-driven economy. However, strides have been taken in the areas of training and farm development. The dip in energy prices leading to the 2015 recession emphasised that economic diversification is paramount to the stability of the Trinidad and Tobago economy. Moreover, the high produce import bill needed to sustain the country’s food needs has led to a greater focus on food security. Investment in traditional crops as well as diversification of produce could provide for greater domestic production and less dependence on neighbouring countries. A move towards agro-industry through technological training and graduate grants could provide significant growth in value-added products for domestic consumption and export. This chapter contains an interview with Nirmalla Debysingh-Persad, CEO, National Agricultural Marketing and Development Corporation.
Explore chapterTax
In conjunction with PwC, this chapter explores the taxation system and Trinidad & Tobago’s efforts to build an investor-friendly environment. It also contains a viewpoint from Brian Hackett, Territory Senior Partner, PwC Trinidad and Tobago.
Explore chapterThe Guide
This section includes a listing of select hotels as well as useful tips for visitors on topics like currency, visas, language, communications, dress code and business hours.
Table of Contents
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