Trinidad and Tobago: Economic Outline

Economic Indicators

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.

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.

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Latest Update: October 2025