Two days after a very optimistic Finance Minister Colm Imbert painted a picture of an economy on the mend comes news from the Central Statistical Office that the T&T economy recorded a massive fall in output for the first three months of 2022 when compared to the last quarter of 2021.
The report stated Trinidad and Tobago’s economy declined by 4 per cent in 1st quarter 2022 when compared with 4th quarter 2021. This, the report explained, was due to contractions in both the energy and non-energy sectors of 1.3 percent and 5.2 percent respectively.
Production in the energy sector has been down due to lower output from bpTT in natural gas and this has had a ripple effect on output from other sectors including petrochemicals. Oil production has remained relatively steady at the low level of 60,000 barrels per day. High energy prices have however buoyed government revenue from the sector.
The report noted several industries in the energy sector recorded declines including : asphalt 56.1%, petroleum support services 46.7%, crude oil exploration and extraction 5.2% and manufacture of petrochemicals 5.1%.
However some energy industries that offset the 1.3% decline in this sector were: refining (including LNG) by 12.1%, natural gas exploration and extraction 5.5%, condensate extraction 4.5% and petroleum and natural gas distribution 0.5%.Lower output levels were recorded within the non-energy sector for trade and repairs (excluding natural gas and Petroleum distribution) 15.2%, other service activities 10.2%; construction 9.2%, electricity (excluding gas) 3.8% and textiles, clothing, leather, wood, paper and printing 5.3%, the report stated.
The report explained the performance of trade and repairs (excluding natural gas and petroleum distribution) was due to the decline in wholesale trade by 22.4%, retail trade of 13.9% and sale of vehicles of 1.7%. Other service activities declined primarily due to decreased activity of funeral parlours of 20.3%.
The main non-energy industries which offset the 5.2% decline in this sector were: food, beverages and tobacco products 8.9%, other manufactured products 5.6%, transport and storage 4.2% and accommodation and food services 1.9%.
The economy contracted marginally by 0.1% in 1st quarter of 2022 when compared with 1st quarter of 2021, the report said.