As of May, TT's economic landscape shows mixed indicators of business development, particularly affecting small and medium-sized enterprises (SMEs).
Various factors have influenced the rise and fall of business activities, including global economic trends, local policy changes and sector-specific developments.
Economic performance
The International Monetary Fund (IMF) projects a real GDP growth of 2.4 per cent for TT in 2024, largely driven by the non-energy sector and the advent of new energy projects.
Despite the economic challenges, the country is expected to maintain a current-account surplus exceeding six per cent of GDP, with foreign reserve coverage steady at 6.6 months of prospective total imports by 2029.
SME development
SMEs have faced significant challenges and opportunities:
– Digital transformation: The pandemic accelerated the adoption of digital technologies, which has become a critical growth area.
Government and private-sector initiatives to bolster digital capabilities have supported this shift, creating new opportunities for SMEs in tech-driven sectors.
– Access to finance: Financial support remains a crucial concern. While there have been efforts to enhance revenue mobilisation and strengthen the fiscal framework, access to affordable finance for SMEs continues to be a barrier.
The chamber has advocated for better financial mechanisms to support SME growth and intends to partner with key national and multi-lateral institutions in support of this thrust.
– Export readiness: Many SMEs that are intent on expanding their clientele outside TT find it difficult to meet the export requirements of regional and international markets.
This requires trade technical assistance and capacity-building to ensure all aspects of their production processes and final output are export-ready.
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To this end, the chamber works closely with the Trade Ministry to facilitate these technical needs and executes trade missions to targeted regional export markets in alignment with the interests of its membership. Critically, these missions are preceded by market-specific "doing business" sessions that serve to prepare all interested companies for market entry.
Sectoral analysis
– Energy sector: Despite the structural decline in traditional energy production, new natural gas projects are expected to boost economic activity.
However, the global transition to net-zero emissions poses long-term risks to the energy sector's viability, necessitating diversification efforts.
– Non-energy sectors: Sectors such as ICT, tourism, creative (also referred to as the orange economy) and manufacturing are witnessing growth due to targeted investments, fiscal incentives and policy support. The chamber highlights the importance of these sectors in driving economic resilience and sustainability.
Fiscal and monetary policies
Fiscal discipline has been maintained, with the fiscal deficit estimated at 1.1 per cent of GDP for the 20
