Economy

With a hydrocarbons-based economy, T&T ranks highly on a number of economic indicators, despite its small size. According to estimates from the IMF, T&T’s per capita income was $21,310 in 2014, the third-highest level in the Americas, after the US and Canada. The World Bank categorises T&T as a high-income nation, while the World Economic Forum classifies it as an innovation-driven economy. The strength of T&T’s energy sector has enabled the country to maintain a stable and strong currency, and post persistent current account surpluses. However, with weaker oil and gas prices and reserves expected to be exhausted by 2025-30, according to the World Bank, economic diversification will be high on the agenda for policymakers. Though lower hydrocarbons prices are set to reduce government revenues, the country’s economic fundamentals should remain strong in 2015 and beyond. This chapter features interviews with Larry Howai, Minister of Finance and the Economy; Vasant Bharath, Minister of Trade, Industry, Investment and Communications (MTIIC); and Gerard Johnson, General Manager of the Caribbean Country Department, Inter-American Development Bank (IDB).