Putting Wealth to Work
Oil revenues have made Trinidad & Tobago a rich little country and exporter of capital. The government's challenge is to channel some of that money into the local economy.
Vast offshore deposits of natural gas surround the tiny
island republic of Trinidad & Tobago. With
crude oil revenues generating 77% of the country's foreign
exchange revenues, and probable natural gas reserves of up to
80 trillion cubic feet lying within its jurisdiction,
Trinidad&Tobago is an island of wealth. Last year, the
country attracted the highest level of foreign direct
investment on a per capita basis for a western hemisphere
country. Its $5,126 per capita income was the highest in the
Caribbean. Since 1995, an annual average of $1 billion in
foreign direct investment has poured into Trinidad
& Tobago, coming mostly from oil and gas companies
paying to develop the country's natural gas reserves. Yet
Trinidad & Tobago cannot absorb the capital
inflows. According to the central bank, Trinidadian financial
institutions exported $352 million in capital in 1999 in the
form of bank lending, acquisitions and bond...
Already have an account?
Subscribe now for unlimited access to all current and archive news, data and market analysis.
Take a free two-week trial now for the latest news, data and market analysis.