Macro Economic Objective on the Health of the Economy of Trinidad and Tobago

Topics: Gross domestic product, Economics, National accounts Pages: 5 (942 words) Published: March 2, 2013
title: a macro economic analysis on the health of the economy of trinidad & tobago

methodology employed:
Data for the economy of Trinidad and Tobago was collected from the CSO (Central Statistical Office) Information was collected for the period (1995- 2005) in the areas of economic growth as represented by changes in GDP (Gross Domestic Product) as well as GNP (Gross National Product), unemployment, inflation and the balance of payments. This data was then evaluated and analysed to determine major trends or findings and make recommendations.

* To produce a statistical report on the economic health of the Trinidad and Tobago economy base on the performance of key macro-economic indicators.

* To examine the implications of the trends observed in the data.

* To make recommendations that can improve the quality of life or the standard of living for citizens in the Trinidad and Tobago economy.

GDP (Gross Domestic Product) VS GNP (Gross National Product) statics for Trinidad and Tobago.

Table 1 showing GDP figures for the years (1995-2005)
YEAR| GDP (TT$ Billions)|
1995| 31.7|
1996| 34.6|
1997| 35.9|
1998| 38.1|
1999| 42.9|
2000| 51.4|
2001| 55.0|
2002| 56.3|
2003| 70.7|
2004| 79.8|
2005| 95.1|

GRAPH 1. SHOWING gdp figures for the year (1995-2005)

The economy of Trinidad and Tobago for the year (1995 -2005) continues to experience affirmative economic growth. Economic growth is defined as an increase in the level of output produced in an economy as measured by GDP. Real GDP measures the volume of goods and services produced otherwise known as the level of real output. As real GDP rises, it means that production and consumption of goods and services produced throughout the economy would have expanded. The growth rate of an economy is measured by calculating the annual change in real GDP. In calculating Real GDP a GDP deflator or price index is used.

ie: Change in Real GDP × 100 Initial years GDP

table (1.1) shows the reasulting conversions of nominal gdp into real gdp. Year| Price Index or GDP Deflator (%) | Nominal GDP (Current Prices in Millions)| Real GDP (Constant Prices in Millions) | 1995| 91| | |

1996| | | |
1997| | | |
1998| | | |
1999| | | |
2000| | | |
2001| | | |
2002| | | |
2003| | | |
2004| | | |
2005| | | |

TABLE (1.2) SHOWING GNP FIGURES FOR THE PERIOD (1999-2005) YEAR| Gross national product(tt$ billions)|
1995| 28.8|
1996| 31.5|
1997| 33.4|
1998| 35.9|
1999| 40.4|
2000| 47.4|
2001| 51.7|
2002| 53.3|
2003| 66.5|
2004| 77.3|
2005| 91.6|


Gross National Product is gross domestic product adjusted for net property income from abroad. This requires that receipts of factor incomes from the rest of the world are added to GDP, while payments of factor incomes to the rest of the world are subtracted. Although GDP is the measure of output produced within an economy, it turns out that some production facilities in a country would be foreign owned an associated income would accrue to foreigners .for example the profit earned by BPTT, the Trinidad and Tobago subsidiary British Petroleum, is repatriated to its foreign shareholders. Such outflows of income must therefore be subtracted from GDP in the calculation of GNP. By the same token, nationals of a country may own productive resources in foreign economies. All income generated from such foreign assets therefore provide an additional source of income to the home economy. For example, the divided received by a Jamaican investor who invests in Trinidad Publishing...
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