Business View CARIBBEAN
3
Trinidad and Tobago’s economy continues to gain mo-
mentum and is expected to expand in real terms by 1.9
percent in calendar 2014, following growth of 1.7 per-
cent in 2013. This outlook is premised on a projected
1.0 percent in the petroleum sector complimented by
a 2.5 percent expansion in the non-petroleum sector.
The services sub-sector, with 51.8 percent, continues
to be the largest contributor to nonpetroleum GDP.
The energy sector is expected to record its second
consecutive year of positive economic growth, with a
smaller expansion of 1.0 percent in 2014, down from
1.6 percent in 2013 and reflecting expansions in the
exploration and production, petrochemicals, service
contractors and distribution sub-industries.
Headline inflation continued its downward trajectory in
2014, remaining at subdued levels year-on-year for the
first six months of 2014 settling at 3.0 percent by June
following some fluctuations earlier in the year. Core
inflation remained relatively stable throughout the pe-
riod, decreasing marginally to 2.5 percent in June from
2.6 percent in January. Year-on-year, headline inflation
has remained at single digit levels for 23 consecutive
months.
Unemployment edged up to 3.7 percent in the fourth
quarter of fiscal 2013, from the previous historical low
of 3.5 percent in the third quarter. In most industries,
with the exception of construction; petroleum and gas;
and wholesale and retail trade, restaurants and hotels,
unemployment rates were below the national average.
With the subdued inflationary environment prevailing
and the continued, albeit weakened, economic growth
of the domestic economy, the Central Bank of Trinidad
