TT needs to close the gap between GDP and GNP

Trinidad and Tobago needs to close the gap between its Gross Domestic Product (GDP) and its Gross National Product (GNP) if we hope to gain a developed nation status, according to Eric Williams, Minister of Energy and Energy Industries. Williams was speaking at the Emancipation Support Committee, Trans-Atlantic International Trade and Investment Symposium at the Hilton Trinidad yesterday. The week-long symposium centred on the energy sector, particularly in terms of trading with Africa. It dealt also in part with finding economic freedom through energy ties between Caricom and Africa. Williams based his declaration on the World Bank listing of the most developed nations. He listed three success factors that will assist us in becoming a developed nation. “We must increase the level of economic diversification, increase the level of value added trade and investment and encourage small and medium businesses along with the private sector to develop in quantum leaps,” said Williams. He added that small and private businesses have the potential to contribute 40 percent of the GDP to TT and this potential needs to be encouraged.

TT currently falls into the upper middle income bracket and while we strive to reach higher income or US$9266 per capita or more, the standards to obtain this keep rising. Our GDP is currently US$7,200 per capita. Williams also said that TT’s key advantage for sustaining and growing markets for energy is transportation. It takes about 5 days to ship LNG to the US from Trinidad, which is faster than transporting within the US. The Government intends to intensify the links between the energy and the non-energy sector, he added.