Economic Development: The Private Sector

This chapter examines Trinidad and Tobago’s (TT) non-energy private sector. The recent sub-par performance of the non-energy sector, notably during the COVID-19 pandemic and subsequent sluggish recovery, highlights a broader trend of underperformance since the decade ending in 2019. The disconnect between the energy and non-energy sectors further hampers the latter’s growth, with declines in energy sector activity negatively impacting the non-energy sector’s growth. Though some industries within manufacturing and services sectors have shown resilience, there exist disparities based on firm size and age. Smaller enterprises face more challenges, showing mostly negative growth rates in contrast to their larger counterparts. Regression analyses highlight the unfavorable profile of the private sector in terms of size, age, legal form, and trade orientation. Microeconomic barriers such as access to finance, crime, infrastructure limitations, and innovation gaps greatly affect firms, with a lack of innovation standing out as the primary obstacle. Addressing these challenges can create a more conducive environment for business expansion in TT.