T&T’s growing debt burden, persistent fiscal deficits and continued dependence on the energy sector are raising serious concerns about the country’s long-term economic sustainability, with economists Dr Vanus James and Dr Jamelia Harris warning that policymakers face increasingly limited options as they prepare the 2027 national budget.
The concerns emerge against a backdrop of worsening public debt indicators and more than a decade of recurring budget shortfalls. Data compiled by the Central Bank shows that the public sector debt-to-GDP ratio increased from 62.9 per cent in 2019 to an estimated 84.2 per cent in 2025, while the economy contracted by an estimated 0.8 per cent last year.
Further data also indicates that from 2020 to 2025, T&T’s general government debt rose from $130.7 billion to $147.8 billion, an increase of approximately TT$17.1 billion. Adjusted general government debt outstanding measure, increased from $118.6 billion in 2020 to $146.9 billion in 2025, an increase of roughly $28.3 billion
Adjusted general government debt outstanding is a modified measure of government debt used by the Central Bank to provide a clearer picture of the government’s actual debt burden.
