Energy to the Rescue
Trinidad & Tobago could see its budget deficit shrink thanks to rising oil and gas prices. International investors are likely to welcome the twin-island nation with open arms.
Oil and gas exporter Trinidad and Tobago (T&T) is expected
to post a budget deficit this year. But soaring energy prices
are likely to increase revenues for its quasi-sovereign energy
companies and raise tax receipts from private energy companies,
helping to reduce the deficits size. To cover the gap,
the finance ministry has already said it might tap the
international markets via a bond issue. Analysts who study the
country say that raising the necessary funds should not be a
difficult task for the investment grade sovereign.
According to estimates from the local central bank, the
energy sector accounted for about 35.8% of T&Ts GDP
in 2009 and 35.7% in 2010. It also accounts for 80% of
The governments fiscal year 2011 (FY11) budget
envisions a deficit of $1.3 billion, or 5.5% of GDP, based on
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