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Mr Speaker, over the period 2002-2006, our economy grew at a high rate and real GDP of 9.7 per cent per year, a growth performance which ranks among the highest in the world. This rapid rate of growth led to a doubling of the economy over the past six years from $55 billion in 2001 to $114.5 billion in 2006 and an increase in per capita income from US$7,100 in 2002 to US$14,790 in 2006.
And while the energy sector was the main driver of the economic expansion, the non-energy sector surpassed expectations, increasing at an average annual rate of 6 percent over the period.
As a result of the boom in economic activity, an average of approximately 14,400 new jobs were created annually, resulting in a reduction in the unemployment rate from 11.7 per cent in 2001 to 5 per cent at the end of 2006, the lowest in our nation’s history. Mr Speaker, this has resulted in labour shortages in several sectors and private sector industries now satisfy some of their requirements by importing labour supported by the government’s new immigration policy.
Mr Speaker, anyone who needs a job today can find one, a situation totally different from six short years ago. It is therefore no wonder that the official data show a halving of the poverty rate from 35 per cent in 1990 to 16.7 per cent by 2006. Several other macro-economic indicators, point to solid macro-economic management.
Mr Speaker, Trinidad and Tobago has been the recipient of significant amounts of Foreign Direct Investment, amounting to close to US$6 billion over the past five years. We have maintained overall fiscal surpluses and in so doing we have reduced both our public and external debt.
Public debt has been lowered from over 60 per cent of GDP to 28 per cent of GDP currently, while external debt which was 17 per cent of GDP in 2001 is now at 5 per cent of GDP.
Our financial system remains robust and resilient and has emerged as the leader in the region; with oil and gas prices remaining buoyant for most of the period we have been able to maintain stability in the exchange rate and increase our foreign exchange reserves to approximately US$6.5 billion, excluding the Heritage and Stabilisation Fund.
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His more than 30 years senior management experience in Finance and Insurance prepared him for the exciting challenges he continues to face in Government |
Mr Speaker, we recognise that we must plan for future uncertainties and therefore we have formalised the Heritage and Stabilization Fund in law.
We have, and in the five-year period have put aside substantial savings for our children’s future such that at the end of August this year the Fund will be $10.9 billion, compared with $1.015 billion when we took office in 2001.
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