Linda Hutchinson-Jafar, Business Writer

Patrick Manning has targeted a two-point cut in the inflation rate from seven to five per cent in the year ahead. - File

Fresh from a comfortable electoral victory, Trinidad and Tobago's Patrick Manning plans to 'hit the ground running' with plans that include diversification of the oil-based economy.

"There will now be much greater progress than before," said Manning, whose new administration was sworn in this week.

Over the last six years, Manning's administration collected revenues amounting to US$26 billion, of which US$11.1 billion or 42 per cent was derived from the energy sector and US$15 billion from other areas of the economy.

He remains committed to the plan to be reclassified among the world's rich nations and to achieve developed nation status by 2025.

"We must waste no time," said Manning.

"The wind is in our favour, including ever-increasing revenue from our main exports. All conditions are most propitious to further our developmental activity and also additionally to secure the future through increased national savings."

Giving a preview into the government's agenda over the next five years, the 61-year-old prime minister said his administration intends to continue economic diversification through deeper industrialisation with industries in plastics, aluminium, iron and steel and information technology.

Controlling inflation

It also plans to focus on targeted non-energy industries, including tourism, manufacturing and small and medium enterprises.

The generation of new wealth from these areas, he said, will guarantee the creation of more jobs to be filled by the thousands of young people who enter the market for employment every year.

"Indeed ... with our approach, we are confident, even taking into account the inevitable periodic fluctuations, to sustain an optimum unemployment rate of between five per cent and six per cent over the next five years," said Manning.

"Let me also assure you that we intend to keep inflation under control and I am confident that we shall attain our target of seven per cent by the end of this year and move to five per cent in the period thereafter."

Under Manning's leadership, an average of 14,400 new jobs were created annually, resulting in a reduction in the unemployment rate from 11.7 per cent in 2001 to five per cent at the end of 2006.

The country's official data also points to a major reduction in the poverty rate from 35 per cent in 1990 to 16.7 per cent by 2006.

The Trinidad government hopes to contain the price of food — a main driver of inflation — though Manning said it is a challenge, given the volatility of world prices.

To address this issue, the prime minister said his government will continue to stress domestic food production.

Manning has also recommitted to building 8,000 new housing units per year under a plan to make housing more affordable, especially for low and middle-income households.

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