Trinidad and Tobago: Economic Outline
Trinidad and Tobago benefits from strong human development indicators and substantial financial reserves. However, the economy remains highly reliant on the energy sector, which contributes over one-third of GDP and more than two-thirds of exports, despite employing just 2.0% of the workforce, leaving the country exposed to global energy price volatility and production shocks. The economy is supported by substantial reserves and the Heritage and Stabilisation Fund, which help cushion external shocks. These buffers, along with political stability, have contributed to macroeconomic resilience amid oil and gas price volatility. In 2024, GDP growth reached an estimated 1.7%, up from 1.4% in 2023, driven by the non-energy sector, particularly services. Meanwhile, the energy sector contracted by 2.1% due to weaker global prices and reduced output. Growth is projected to reach 2.8% in 2025 and average 2.5% over the medium term, supported by rising oil production and two new natural gas projects expected to come online by 2027 (World Bank data).
Regarding public finances, in FY2024, Trinidad and Tobago’s fiscal position weakened, with the primary balance shifting from a 1.5% of GDP surplus in FY2023 to a 1.4% deficit, and the overall deficit widening to 5.0% of GDP from 1.8% the previous year. This was largely due to an 8.2% of GDP drop in energy revenues, partially offset by a 3.6% increase in non-energy revenues. Expenditures slightly declined to 31.8% of GDP from 32.7% in 2023. The overall fiscal deficit is projected to remain under 3.0% of GDP in 2025 and 2026 due to continued weakness in energy revenues, before improving in 2027 as major investment projects conclude. The debt-to-GDP ratio, estimated at 56.7% in 2024, is expected to ease marginally to 55.9% in 2025. Average annual inflation fell to 0.5% in 2024 from 4.6% in 2023. It is expected to rise gradually, approaching 2% over time. Trinidad and Tobago has a sophisticated economy for a country of its size, embracing mineral extraction, agriculture, industry, tourism and services, but it is underpinned by a single commodity: oil. The petroleum and petrochemical industries account for about 35% of GDP, while ores and minerals account for over 80% of exports. The country has also become a major financial centre in the Caribbean. Diversifying the economy remains the main challenge the country will have to face in the coming years. A host of other factors, including low labour productivity, inefficient government bureaucracy and corruption, have hampered economic development.
The World Bank estimated the country's unemployment rate at around 4.5% in 2024, from 4.2% one year earlier. Despite relatively strong academic performance, women’s labour force participation remains notably lower than men’s—at 46.9%, it trails by 16.4 percentage points. However, the informal sector is still prominent. Social issues include an ageing population, low labour participation rate, insufficient job creation, low labour productivity, difficulties in opening a business and unmanaged migration, as well as inequality and one of the highest crime rates in the world. The country’s GDP per capita (PPP) was estimated at USD 34,436 in 2024 by the IMF.
| Main Indicators | 2024 (E) | 2025 (E) | 2026 (E) | 2027 (E) | 2028 (E) |
|---|---|---|---|---|---|
| GDP (billions USD) | 25.52 | 26.47 | 26.89 | 27.44 | 28.42 |
| GDP (Constant Prices, Annual % Change) | 1.4 | 2.4 | 1.1 | 1.9 | 3.0 |
| GDP per Capita (USD) | 17,872 | 18,445 | 18,650 | 18,949 | 19,538 |
| General Government Gross Debt (in % of GDP) | 64.5 | 67.8 | 69.6 | 70.5 | 69.3 |
| Inflation Rate (%) | 0.5 | 1.3 | 2.0 | 1.9 | 1.8 |
| Current Account (billions USD) | 1.78 | 2.12 | 1.59 | 1.65 | 2.24 |
| Current Account (in % of GDP) | 7.0 | 8.0 | 5.9 | 6.0 | 7.9 |
Source: IMF – World Economic Outlook Database - Latest data available.
Note: (e) Estimated Data
| Monetary Indicators | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Trinidad and Tobago Dollar (TTD) - Average Annual Exchange Rate For 1 GBP | 8.66 | 9.30 | 8.33 | 8.39 | 8.63 |
Source: World Bank - Latest available data.
| Breakdown of Economic Activity By Sector | Agriculture | Industry | Services |
|---|---|---|---|
| Employment By Sector (in % of Total Employment) | 2.9 | 26.9 | 70.1 |
| Value Added (in % of GDP) | 0.8 | 35.0 | 59.9 |
| Value Added (Annual % Change) | -5.8 | -4.7 | 3.9 |
Source: World Bank - Latest available data.
| Socio-Demographic Indicators | 2026 (e) | 2027 (e) | 2028 (e) |
|---|---|---|---|
| Unemployment Rate (%) | 4.1 | 4.2 | 4.2 |
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Labour Force | 669,487 | 668,956 | 636,888 |
Source: International Labour Organization, ILOSTAT database
| 2017 | 2018 | 2019 | |
|---|---|---|---|
| Total activity rate | 68.85% | 68.73% | 68.59% |
| Men activity rate | 79.53% | 79.42% | 79.26% |
| Women activity rate | 58.28% | 58.15% | 58.04% |
Source: International Labour Organization, ILOSTAT database
The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.
Economic freedom in the world (interactive map)
Source: Index of Economic Freedom, Heritage Foundation
See the country risk analysis provided by Coface.
The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.
Political freedom in the world (interactive map)
Source: Freedom in the World Report, Freedom House
The world rankings, published annually, measures violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position are assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire incorporating the main criteria (44 in total) to assess the situation of press freedom in a given country. This questionnaire was sent to partner organisations,150 RWB correspondents, journalists, researchers, jurists and human rights activists. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).
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Latest Update: October 2025
