Changes

*Hotels and guesthouses: 0.2% of GDP.

*Hotels and guesthouses: 0.2% of GDP.

The twin-island nation of Trinidad and Tobago continues to experience real GDP growth as a result of economic reforms, tight monetary policy, fiscal responsibility, and high oil prices. In 2006 the country experienced a real GDP growth rate of 12.2%. This is expected to level off to 5.5% in 2007. The PNM-led government continues its sound macroeconomic policies. Long-term growth looks promising, as Trinidad and Tobago further develops its oil and gas resources and the industries dependent on natural gas, including petrochemicals, fertilizers, iron/steel and aluminum. Additional growth potential also exists in financial services, telecommunications and transport. Strong growth in Trinidad and Tobago over the past few years has led to trade surpluses, even with high import levels due to industrial expansion and increased consumer demand. The debt service ratio was 2.8% in 2006, up from 1.8% in 2005. In 2006, unemployment fell to 5% down from 6.7% in 2005. In the first quarter of 2007, unemployment was at 6.5%. Headline inflation peaked at 10% (year-on-year) in October 2006, then moderating to 7.9% as of August 2007. Food price inflation slowed to 16.7% (year-on-year) in August 2007, down from 22% in October 2006. After raising its interest rates eight times in 2006, the Central Bank has maintained the rate at 8.0% since September 2006. There are no currency or capital controls and the Central Bank maintains the TT dollar in a lightly managed, stable float against the U.S. dollar. From October 2006 to March 2007, the exchange rate experienced some fluctuation between TT$6.3122 and TT$6.3288 to US $1. The rate as of October 9, 2007, was TT$6.3335 to US$1.

The twin-island nation of Trinidad and Tobago continues to experience real GDP growth as a result of economic reforms, tight monetary policy, fiscal responsibility, and high oil prices. In 2006 the country experienced a real GDP growth rate of 12.2%. This is expected to level off to 5.5% in 2007. The PNM-led government continues its sound macroeconomic policies. Long-term growth looks promising, as Trinidad and Tobago further develops its oil and gas resources and the industries dependent on natural gas, including petrochemicals, fertilizers, iron/steel and aluminum. Additional growth potential also exists in financial services, telecommunications and transport. Strong growth in Trinidad and Tobago over the past few years has led to trade surpluses, even with high import levels due to industrial expansion and increased consumer demand. The debt service ratio was 2.8% in 2006, up from 1.8% in 2005. In 2006, unemployment fell to 5% down from 6.7% in 2005. In the first quarter of 2007, unemployment was at 6.5%. Headline [[inflation]] peaked at 10% (year-on-year) in October 2006, then moderating to 7.9% as of August 2007. Food price inflation slowed to 16.7% (year-on-year) in August 2007, down from 22% in October 2006. After raising its interest rates eight times in 2006, the Central Bank has maintained the rate at 8.0% since September 2006. There are no currency or capital controls and the Central Bank maintains the TT dollar in a lightly managed, stable float against the U.S. dollar. From October 2006 to March 2007, the exchange rate experienced some fluctuation between TT$6.3122 and TT$6.3288 to US $1. The rate as of October 9, 2007, was TT$6.3335 to US$1.

Trinidad and Tobago has made a transition from an oil-based economy to one based on natural gas. In 2006, natural gas production averaged 4000 million standard cubic feet per day (mmscf/d), compared with 3200 mmscf/d in 2005. The petrochemical sector, including plants producing methanol, ammonia, urea, and natural gas liquids, has continued to grow in line with natural gas production, which continues to expand and should meet the needs of new industrial plants coming on stream over the next few years, including iron, aluminum, ethylene and propylene. In December 2005, the Atlantic LNG fourth production module or "train" for liquefied natural gas (LNG) began production. Train 4 has increased Atlantic LNG's overall output capacity by almost 50% and is among the largest LNG trains in the world at 5.2 million tons/year of LNG. Trinidad and Tobago is the fifth-largest exporter of LNG in the world and the single largest supplier of LNG to the U.S., supplying two-thirds of all LNG imported into the U.S. As a result of Atlantic LNG Train 4, the energy sector experienced 21.4% growth in 2006 and accounted for nearly 47% of GDP at that year's end.  

Trinidad and Tobago has made a transition from an oil-based economy to one based on natural gas. In 2006, natural gas production averaged 4000 million standard cubic feet per day (mmscf/d), compared with 3200 mmscf/d in 2005. The petrochemical sector, including plants producing methanol, ammonia, urea, and natural gas liquids, has continued to grow in line with natural gas production, which continues to expand and should meet the needs of new industrial plants coming on stream over the next few years, including iron, aluminum, ethylene and propylene. In December 2005, the Atlantic LNG fourth production module or "train" for liquefied natural gas (LNG) began production. Train 4 has increased Atlantic LNG's overall output capacity by almost 50% and is among the largest LNG trains in the world at 5.2 million tons/year of LNG. Trinidad and Tobago is the fifth-largest exporter of LNG in the world and the single largest supplier of LNG to the U.S., supplying two-thirds of all LNG imported into the U.S. As a result of Atlantic LNG Train 4, the energy sector experienced 21.4% growth in 2006 and accounted for nearly 47% of GDP at that year's end.