Trinidad and Tobago GDP can be classified into Trinidad and Tobago GDP -PPP (Gross Domestic Product – Purchasing Power Parity);
Trinidad and Tobago GDP – official exchange rate; Trinidad and Tobago GDP – per capita PPP; Trinidad and Tobago GDP- real growth rate; GDP – composition by sector. GDP of Trinidad and Tobago has different figures for these classifications.
Gross Domestic Product or GDP is an economy measure of a country's gross produce. Gross Domestic Produce is the sum of all goods and services produced within a country. GDP is the sum of :
- Consumption + Investment + Government Expenditure + Net Exports
- Consumption is the expenditure incurred by consumers in purchasing domestic goods and services;
- Investment indicates the total private expenditure involved in producing domestic goods and services;
- Government Expenditure is the government spending on producing domestic goods and services;
- Net Exports implies total exports minus the total imports. This component can have negative values.
The GDP thus calculated gives the expenditure approach towards calculating GDP. An increase in GDP does not necessarily mean an increase in purchasing power. The numerical value of GDP can increase because of an increase in population which automatically increases consumption an important component of GDP. Inflationary pressure can also inflate GDP. Real GDP can be obtained by dividing the nominal GDP by a price deflator. An increase in this real GDP indicates a positive growth.
Purchasing Power Parity is an economic tool to determine the relative values of two currencies. It is a useful tool since it helps to determine the purchasing power of a currency in two nations.
The Trinidad and Tobago GDP figures in the different categories for the year 2006 are:
- GDP calculated at official exchange rate was US $ 14.9 billion
- GDP calculated according to purchasing power parity (GDP-PPP) was U s $ 21.12 billion
- Per capita GDP calculated as per PPP was US $ 19,800
- Real growth in GDP was 11.9%
- Industry contributed 57.7% of total GDP of Trinidad & Tobago
- Services accounted for 41.5% of total GDP
- Agriculture comprised 0.7% of the total Gross Domestic Produce
Trinidad and Tobago GDP figures under different categories give a rough estimate of the country's economic growth pattern.
