Diversification of T&T’s economy seems clichéd but CEO of the Energy Chamber Dr Thackwray Driver says failure to do so by successive governments is one of the causes of the current recession.
However, he added, if ever there was a need to strengthen revenue potential in the non-energy sectors, now is that time.
“Obviously when we are highly reliant on one sector, when that sector goes into a decline it really shows up the problem of a lack of diversification in the economy,” Driver told the T&T Guardian yesterday.
“You can only diversify your economy if you can competitively produce other things which the world wants to buy.
“We need everything from agriculture, tourism, services, exports and the manufacturing sector—all of those things.
“Now is the time when you really have to look to diversification. Necessity is the mother of invention.”
Driver added: “Over the past year we have had low prices and we have production declining, so that means the energy sector has been shrinking and that is what is creating the recession for the country.”
He said energy companies were trying to increase their productivity and efficiency to ensure they remain competitive, especially in the global market.
However, they could not avoid the current situation.
The world is experiencing low oil prices and indicators suggest it may be so for a while.
Driver said energy companies have to find a way to respond to that situation.
“I don’t think we should fool ourselves and think there is going to be a sudden jump back up in prices and everything is going to be fine,” he said.
“It is about going for the long haul and trying to fix those structural weaknesses that we have in the economy to make sure we are competitive.” (KF)