What does GROSS DOMESTIC PRODUCT (GDP) mean to the common people? GDP is the
monetary value of all the finished goods and services produced within a
country's borders in a specific time period, estimates are commonly used to
determine the economic performance and standard of living of a whole country or
region, and to make international comparisons. How well is a country, not a
political party as the executive or as opposition, doing economically? Is the
country growing or declining, paying its bills and servicing its obligations?
Year on year, is the country providing better and more jobs? Are sectors and
industries expanding and diversifying? Hence, are lifestyles improving?
The average person, citizen or resident
within the nation’s borders needs to be educated and informed, from very young,
as to how the nation earns revenue and pays for its population’s basic expenses.
Hence, giving and helping, each productive age person, information to choose and
guide a life-long career. Understanding the tax collection that pays the
nation’s payroll in its major categories: #SYNERGIES #Security #Healthcare #Education
#Infrastructure #EconomicDrivers. And further, developing and
competing internationally, through Sectors and Industries to grow the local
economy measured by its GDP. It is this GDP growth, which invites local and
foreign investment, attracts opportunities, builds operations, and which in
turn creates jobs for the same average person.
The
Central Statistical Office (CSO) conducted a simple rebase (Non-benchmark
Rebase) of its Gross
Domestic Product (GDP) estimates for Trinidad and Tobago, which updates
the reference base year from 2000 to 2012. The CSO has also transitioned its
GDP estimates from the Trinidad and Tobago System of National Accounts (TTSNA)
to the International Standard Industrial Classification of All Economic
Activities, Revision 4 16 (ISIC. Rev 4).
Addressing GDP, calculated at Constant (2012)
Prices, to have declined by (1.86%) in the last published Sep 30, 2017 Actual.
This was led with contributions from Mining and Quarrying at 19.63%, Trade and
repairs at 17.42%, Manufacturing of Petroleum and chemical products at 14.09%
and Financial and insurance activities at 6.55%. Provisional GDP is set at
1.87%, with growth expected to come from Agriculture, Forestry and Fishing by
(15.64%) and across Manufacturing by 2.49% in this current 2018 Revised
Estimates. GDP is conservatively projected to grow on average of 1.02% per
annum, over the next ten years.
The ten-year Projections focus on both the positive
or negative movement of, and the rate of movement of, ECONOMIC INDICATORS. With
continuous and constant review, the independent Office of Budgets will receive,
analyse and report on all policy proposals including; changes in debt
management, investment portfolio adjustments and of course, industry or sector
diversification. Changes to Total Tax/GDP from 20.77% to 47.84%, Total
Income/GDP from 29.94% to 65.53%, Total Expenditure/GDP from 34.55% to 40.47%,
Net Surplus/(Deficit)/GDP from (4.61%) to 25.06%, Total Public Sector Debt/GDP
from (42.04%) to (27.76%), Total Quasi-Government Debt/GDP from (33.08%) to
(30.13%), resulting in the Total Debt/GDP at Constant (2012) Prices recovering
from (77.83%) estimated for Oct 1, 2018 - 2019 Estimates, to 25.74% and Total
Debt/GDP at (Current) Market Prices recovering from (78.19%) estimated for Oct
1, 2018 - 2019 Estimates, to 25.86% in the tenth year.
Further
measuring population size would determine GDP/Capita, an indicator of Standard
of Living and National Development. Hence, it falls to the Governance structure
to clear the way and take the first steps to develop, Sectors or Industries
with a natural or man-made Competitive Advantages, as Economic Drivers.
Entrepreneurial ideas and activities judged to have the ability to grow
Operations, create Jobs, expand Taxation Revenue Collections, diversify the
Economy, and take the Nation Forward.
No
one document can promote, attract or win Investments into or benefiting a
nation. This is a global competition targeting numerous Local and Foreign
private investors, financial instruments and pension plans, with many different
goals and objectives. The source data collection and interpretation
methodologies, and historical performance records are key to building investor
confidence. Hence, the need for sound prudent detail analysis and public
reporting which, a properly constituted, Independent of politics, Office Of
Budgets (OOB) would globally deliver.
An
Agency to Invite, Analyse, Approve, Incubate, Monitor and Measure Ideas. Ideas
passed on to a Grant and Soft Loan Agency. An Independent Office
Of Budgets (OOB) will be charged with the forecasting and
Measurement of Output (Productivity) Results from sector or industry. OOB also
will track Real Debt, the public is responsible for, inclusive of State
Enterprises Debt. An Investment Agency to prepare such model entities for full
open market operations via an Initial Public Offering (IPO).
Rationale
T.A.J
& Associates Company Limited
uses this occasion to comment on topics that have been covered, both academically
and by the mainstream media, to add its opinion and point out investment
opportunity, not to invoke any social action.
