Trinidad and Tobago’s economy rebounded sharply in 2022, supported by robust growth in the energy sector which filtered through to the non-energy sectors. Oil and gas production spiked in response to greater external demand and favorable international prices for energy products, reflecting the rise in global crude oil and natural gas prices. The labour market continued to recover from the COVID-19 shock but significant slack remains as some businesses have not fully recovered. Inflation accelerated driven by soaring food import prices reflecting supply constraints exacerbated by the Russia-Ukraine conflict and the strengthening of the United States of America dollar. The central government’s (CG) fiscal position strengthened, due to higher growth in revenue relative to expenditure. The external current account surplus improved significantly, attributed to sharp increases in earnings from energy sector exports. Monetary policy remained accommodative to the
recovery while managing rising inflation.

The positive performance of the non-energy sector coupled with potential uptick in energy production will likely support the near-term recovery. The economy is projected to grow by 4.4% in 2023, and near return to pre-pandemic levels of real gross domestic product (GDP). This forecast is premised on a positive outturn in oil and gas production and the continued robust performance of the non-energy sector.