Home' Trinidad and Tobago Guardian : July 13th 2014 Contents SBG6 NEWS
SUNDAY BUSINESS GUARDIAN www.guardian.co.tt JULY 13 • 2014
By more than double its
nearest cohort, the US has
been the number one for-
eign direct investor in
T&T over the last 10
years, 2003-2013, accord-
ing to the World Invest-
ment Report 2014 actual
data released July 3.
At the launch of the World Investment Report
by InvesTT on June 24 at Arthur Lok Jack Grad-
uate School of Business, the actual figures for
foreign direct investment (FDI) for T&T had
not yet been released.
With over US$3.094 billion invested over
the period, the US led by more than double,
the second placed United Kingdom, whose
companies invested US$1.412 billion in the T&T
economy. The UK was closely followed by
Canada in third place with US$1.205 billion
invested in T&T.
Interestingly, in fourth place, was the category
"others," which accounted for US$1.032 billion
of foreign direct investment (FDI); and which
are countries outside of: Australia from which
T&T received US$316 million; China; South
Africa; India from which T&T received US$171
million; France; Thailand; United Arab Emirates
from which T&T received US$23 million; Italy;
and South Korea from which T&T received
US$4 million in investment over the period.
Overall, T&T received US$7.256 billion in
FDI over the period, according to the report.
T&T s net FDI (inflows minus outflows) has
been increasing over the past five years. In
2009, T&T s net FDI was US$709.1 million; in
2010 it was US$549.4 million; in 2011 it was
US$770.6 million; in 2012 it was US$772.1 mil-
lion and in 2013 it was US$970.7 million.
FDI inflows into T&T totalled US$709.1 mil-
lion in 2009, US$549.4 million in 2010; US$1.831
billion in 2011; US$2.4529 billion in 2012; and
US$1.7126 billion in 2013.
FDI inflow into T&T year-on-year, 2012 on
2013, has declined.
Turning to T&T investment in other coun-
tries, T&T invested US$741.9 million in other
countries in 2013; US$1.6808 billion in 2012;
US$1.0604 billion in 2011. In 2009 and 2010,
there were no FDI outflows from T&T.
With its level of FDI, T&T is the second
highest recipient of FDI among what the United
Nations Conference on Trade and Development
(UNCTAD) calls "small island developing states"
or SIDS. Jamaica is the sixth highest in the
group and the Bahamas is the eighth.
In the report, T&T was in the peer group of
recipient countries of inward FDI levels between
US$1.0 billion to US$4.9 billion. These countries
were in 2013 Panama, Uruguay, Costa Rica,
Dominican Republic, Bolivia, Guatemala, the
Bahamas, and Honduras.
T&T s peers in FDI outflow in 2013 were
Panama, the Bahamas, Costa Rica and Peru,
meaning those other countries are also net FDI
Mineral extraction and downstream-related
activities, tourism, business and finance are
the main target industries for FDI, the World
Investment Report said.
Sectoral FDI data are available for very few
SIDS countries, the report said. Only Jamaica,
Mauritius, T&T, and Papua New Guinea make
available official sectoral data on FDI. These
data show a high concentration of FDI in the
extractive industries in Papua New Guinea and
FDI flows to peer member Mauritius are
directed almost totally to the services sector,
with soaring investments in activities such as
finance, hotels and restaurants, construction
and business in the period 2007--2012.
FDI to Jamaica, which used to be more diver-
sified among the primary, manufacturing and
services sectors, has increasingly targeted service
industries during the period 2007--2012, the
In the absence of FDI sectoral data for most
SIDS countries, information on greenfield FDI
projects announced by foreign investors in the
SIDS between 2003 and 2013 is used as an
alternative way to assess which countries and
industries have attracted foreign investors inter-
est, if not actual investments, the report said.
Mergers and acquisitions (M&As)---another
mode of FDI---are almost nonexistent in SIDS,
the report said. Upstream and downstream
activities in the oil, gas and metal minerals
industries have been the focus of most capital
expenditures in greenfield projects announced
by foreign investors (57 per cent of the total),
with Papua New Guinea, T&T, Timor-Leste
and Fiji hosting these projects.
Hotels and restaurants are the next largest
focus of foreign investors pledges to invest (12
per cent of total announced investments), with
Maldives being their favourite destination. Other
services industries, such as construction, trans-
port and communications, finance, public util-
ities and business activities, are among the
other typical activities for which greenfield FDI
projects have been announced in SIDS coun-
Developed-country trans-national corpora-
tions (TNCs) have announced the most capital
spending in greenfield projects in SIDS countries
(almost two thirds of total capital expenditures).
Resource-rich countries such as Papua New
Guinea, T&T, and Timor-Leste represented 63
per cent of such TNCs announced capital
TNCs from developing and transition
US is still T&T's No 1 investor
T&T was in the peer group of recipient countries of inward FDI levels between US$1.0 billion to
US$4.9 billion. These countries were in 2013 Panama, Uruguay, Costa Rica, Dominican Republic,
Bolivia, Guatemala, the Bahamas, and Honduras.
Continued on Page 7
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