January 25, 2021

Cayman: Current Account deficit narrowed/Domestic Economy grew in 2019

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Cayman Islands’ Current Account deficit narrowed in 2019

The Cayman Islands’ Balance of Payments (BOP) and International Investment Position (IIP) Report 2019 shows the statistical summaries of the economic and financial transactions between residents of the Cayman Islands and the rest of the world. The statistics are generated from survey returns of local businesses and other organizations, as well as data provided by the Cayman Islands Monetary Authority (CIMA).

The latest BOP statistics for 2019 shows that the total payments of residents to non-residents exceeded receipts, thus resulting in a current account deficit of $484.7 million, compared to the $773.0  recorded in 2018.

The Current Account deficit for 2019 was estimated to have contracted by 37.3 percent to reach $484.7 million from the deficit of $772.9 million recorded in 2018.  This emanated mainly from lower deficits in the primary and secondary income sub-accounts together with the higher surplus on the services account. In contrast, trade-in-goods recorded higher net payments, reflecting the higher spending on imported goods for 2019 over 2018 by 18.3 percent.

The IIP shows the value and composition of foreign assets and liabilities of residents at the end of the year. The latter represents the total investments of non-residents in the Cayman Islands.

At the end of 2019, the Cayman Islands residents’ net financial investment abroad was estimated at CI$47.0 billion. These consisted of portfolio investment ($20.0 billion); financial derivatives ($29.5 billion); other investments (currencies, loans, deposits and other investments) ($11.8 billion); and reserve assets ($0.15 billion). On the other hand, net direct investments in the Cayman Islands were estimated at $14.5 billion.

Other information may be obtained from the Report posted at the Economics and Statistics Office website: www.eso.ky

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The Domestic Economy Grew in 2019 for the Ninth Consecutive Year

The Cayman Islands’ System of National Accounts Report 2019 which presents the economic performance of the Islands using the Gross Domestic Product (GDP) is released today.

The GDP estimate for 2019 which is based on data collected from businesses and other establishments in the Islands shows that the local economy expanded by 3.8%, the ninth consecutive year of positive economic performance and the second-highest recorded rate of growth since 2007. The 3.8% growth in real GDP (or GDP adjusted for inflation) exceeds the advance GDP growth estimate of 3.2% percent for the year which was based on early indicators.

The domestic economic growth in 2019 outperformed the growth estimated for the USA (2.3%), the Euro Area (2.4%), Latin America & the Caribbean (0.0%), Canada (1.3%), and the United Kingdom (1.4%) for the same period. 

The industries posting the highest rates of expansion in 2019 were construction activities (10.0%); other services (9.3%); education services (7.5%); hotel & restaurant services (6.9%); public administration & defense (6.8%); and electricity, gas & air conditioning supply (6.7%).

The financial & insurance services industry continued its expansion in 2019 at an increased pace when compared to 2018.  The industry grew by 2.6% in 2019, an uptick from the 2.2% posted in 2018.

For more information on the “The Cayman Islands’ System of National Accounts Report 2019”, please visit www.eso.ky.

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