Central bank says TT on good growth path

The economic outlook for Trinidad and Tobago is expected to between  6-7 percent in 2005, according to the Central Bank. The  report states that the energy sector is expected to continue to lead the expansion process and pointed out that “the start of crude oil production by BHP Billiton may reverse the declining trend in petroleum output. (Production is expected to be in the vicinity of 183,000 barrels of oil per day (bpd) compared with 125,000 bpd in 2004.) “In addition,” continued the report, “natural gas production is expected to increase reflecting the growth in demand from a full year’s production of two petrochemical plants and the start of operations of the M-500 methanol plant.”

Looking at the Balance of Payments, the report forecast that it should remain “strong” in 2005 with a merchandise trade balance expecting to record a surplus of around $2.2 billion, largely due to substantial increases in export earnings. “LNG exports are expected to add about $1 billion to the total exports as Train IV of the ALNG plant is expected to be fully commissioned in 2005,” added the report. While the recent surge in FDI inflows, consequential to equity investments in the energy sector is expected to taper off, the report stated that if planned investments materialised during the period, the FDI inflows might stabilise.