Gopee-Scoon hails $47b balance of trade

TRADE Minister Paula Gopee-Scoon on Tuesday boasted of TT's balance of trade with the rest of the world of $47 billion in 2022, mostly due to non-energy exports, addressing the budget debate in the House of Representatives.

She said the trade surplus had jumped by 145 per cent, from $19 billion in 2021 to $47 billion in 2022.

This trade balance was seen in the 2024 budget's Review of the Economy, also citing $4 billion in 2020, $35 billion for October 2021-June 2022, and $23 billion for October 2022-June 2023.

Within the $47 billion jump in trade surplus, Gopee-Scoon said exports had grown from $58 billion to $89 billion.

The review showed imports had grown slightly from $38 billion to $42 billion.

Gopee-Scoon said, "Total exports increased by 54 per cent from $58.3 billion to $89.1 billion, and our products are now in 143 markets worldwide."

Within these figures, she said energy exports rose by 68 per cent from $42.7 billion to $71.2 billion.

"Non-energy exports increased by 15 per cent, from $15.6 billion to $17.9 billion, excluding petrochemicals such as methanol, urea and ammonia."

She said the manufacturing sector showed a "stellar performance," amid a six per cent growth in GDP post-covid19.

"When we look at the breakdown, the main driver of this performance is a 31.7 per cent increase in the food, beverage and tobacco sectors."

Gopee-Scoon said total manufacturing, including petroleum and petrochemicals, grew from $24 billion in 2015 to $45 billion in 2022.

Within this figure, non-energy and non-petrochemical manufacturing had risen from $11 billion to $15 billion. Within this subsector, the food and beverage sector had grown from $8 billion in 2015 to $12 billion in 2022.

"According to the Review of the Economy, non-oil revenue is expected to expand by a considerable TT$ 5.3 billion in 2024 to $35.5 billion, which will represent 66 per cent of total revenue. That is diversification! Our manufacturing sector is growing!"

She said retailers were now also becoming manufacturers and TT now also has "a wave of young and new manufacturers."

Non-energy exports rose from $15 billion to $17 billion over 2021-2022, led by the iron and steel, food and beverage, and chemical and fertiliser subsectors.

Gopee-Scoon said the wood and wood products subsector has significant potential, employing 4,000 people, amid last year's exports of $37 million.

On foreign exchange, she denied opposition claims that the Government was only facilitating large manufacturers.

"According to the Eximbank, 158 companies, the majority of whom were SMEs (small and medium enterprises), accessed a total US$689 million as at September 29 under the forex facilities for manufacturers."

Gopee-Scoon boasted of a leap in private-sector credit over the past year from $64 billion to $68 billion, indicating a healthy economy with businesses identifying opportunities for growth. Citing unemployment at 3.7 per cent, she said $3 billion in fresh investment in 2023 had translated into 2,905 new jobs.

She said 49 out of 78 lots have been occupied at Phoenix Park Industrial Estate and some 18 investments worth $458 million have been committed to the park. This sum comprised $231 million in local investments at 15 lots to generate an estimated 536 new jobs, plus $226 million in foreign investments at three sites to create 325 jobs.

The Moruga agro-processing and light industrial park contains six closed investments, valued at $18 million, generating 134 jobs, with two firms now in operation after a $7.2 million investment to generate an estimated 75 jobs.

She concluded, "The non-energy sector today is more vibrant. Our businesses, both in the manufacturing and services sectors, continue to grow and are major catalysts of economic transformation.

"This Government is about vision, about people, about building the economy.

"Those on the other side have nothing to offer. Same old rhetoric."