September 1, 2010
by Taina RosaThe government of Trinidad & Tobago (T&T) is forecasting a deficit of 5.4% of GDP this year, but it is possible that rising oil and gas prices could shrink that. This would mean lower financing needs for the government.
About 90% of T&Ts exports are energy-related, according to JPMorgan. Fluctuations in the price of oil and gas can hurt or help GDP growth.
In 2010, T&T is expected to pump 150,000 barrels per day of oil and gas liquids, according to London-based research firm Business Monitor International. In 2008 it produced 154,000 barrels per day and in 2009 it produced 152,000 barrels per day. By 2019, BMI is forecasting T&Ts output will tumble to 90,000 barre
Trinidad & Tobago’s economy is dependent on oil and gas. An expected rise in energy prices could help erode the deficit, cutting international funding needs.