Economic Trends

Trinidad and Tobago’s economy has continued on a growth path in both the petroleum and non-petroleum sectors since 1994. Over the period, 2002-2006, the economy expanded by an average 10.2% and Real GDP Growth is projected to accelerate sharply in 2006, to 12%.

Trinidad and Tobago is classified as a middle-income developing country. Although the country has made considerable strides in the last two decades to become one of the more wealthy and progressive countries it the Caribbean, much work has to be done to achieve developed nation status by the year 2020.

Key Economic Indicators

Rapid GDP Growth has been accompanied by a substantial increase in job creation with an annual average of 12,000 jobs being created in the period 2005-2006. The unemployment rate has fallen steadily, reaching 5% in the fourth quarter of 2006 - the lowest unemployment rate on record.

Investment Climate

Trinidad and Tobago has an open investment climate. Since 1992, almost all investment barriers have been eliminated. The government continues to welcome foreign investors. The government has a double taxation agreement, a bilateral investment treaty and an intellectual property rights agreement with the United States. The stock of U.S. direct investment in Trinidad and Tobago was $3.85 billion as of 2006. Total foreign direct investment inflows over the last five years amounted to approximately US$6 billion. Among recent and ongoing investment projects are several involving U.S. firms: ISG Trinidad started operations in November 2004 in a plant that has the capacity to produce 500,000 metric tons annually of hot briquetted iron.

In December 2006 Nucor began producing direct reduced iron for shipment to the U.S. at its plant in Trinidad, which has a production capacity of 2.0 million tons per year. Two aluminum smelter plants are also planned, one of them to be owned by Alcoa. The first major business-class hotel to be opened in several years bears the Marriott Courtyard brand. A Hyatt-managed hotel was opened in 2007, part of a multimillion-dollar waterfront development project in Port of Spain.