Latin American Economy & Business - December 2017 (ISSN 1741-7430)

Trinidad & Tobago has the unenviable reputation of registering one of the worst economic performances in the Latin America and Caribbean region in recent years, with only Venezuela faring worse in 2016. The International Monetary Fund (IMF) estimates that Trinidad & Tobago's economy shrank by 6% in 2016, following very weak growth in 2015 and a slight contraction in 2014. A combination of low energy prices and falling energy production are the main factors behind this weak performance, with energy-GDP slumping by just over 11% alone in 2016. Although 2017 is also expected to remain weak, prospects for 2018 are stronger, with additional natural gas capacity expected to come on stream. However, in the absence of significant fiscal and external consolidation, the country’s already-large twin deficits are set to remain extremely large.