With economic activity growing across all major sectors, the GDP rose by 4% in first quarter 2018.
Healthy consumer demand and spending contributed to the highest second quarter growth of merchandise imports since 2005 – valued at $254 million and growing by 15.2% over the comparative period in 2017.

Core Government recorded a surplus in both the first and second quarters of 2018.

Grand Cayman (GIS) – The latest reports released today (Friday, 19 October 2018) by the Economics and Statistics Office (ESO) spotlight the enduring healthy economic growth of the Cayman Islands.

The Cayman Islands’ Quarterly Economic Report: First Quarter 2018 reveals that the Gross Domestic Product – the barometer for economic activity – grew by 4% in the first three months of 2018, with all major sectors such as hotels, restaurants and construction, registering significant growth.

Finance and Economic Development Minister, Hon. Roy McTaggart, said, “We are on a healthy path to maintaining the Islands’ economic growth and consistently moving from strength to strength annually. The 4.0% GDP growth estimate for the first quarter of 2018 is stronger than the 2.9% estimated for 2017.”

Aiding the accelerated growth for the quarter were a record increase in tourist arrivals of 20.6% as well as a rise in new company registrations of 41.7%, with new partnership recordings rising by 28.7%.
Additionally, stock exchange listings rose by 30.9%, registering the highest level since 2009.

For its part, core Government recorded a surplus of $190.7 million during the first two quarters of 2018, achieving in fact the highest recorded first half surplus.
Maintaining another commitment, Government continued to pay off the public debt at a fast rate. As such the debt which had stood at $483.3 million in March 2017 was down to $432.8 million at end-June 2018.

“Our surplus thus far is significant, our debts continue to fall. We have proved, and are continuing to prove, that we listen and we act to ensure that our robust economy continues to thrive at present and will endure into the future,” Minister McTaggart noted.

The ESO also released the Quarterly Trade Statistics Bulletin: April to June 2018 which showed total merchandise imports in the second quarter reaching $254 million and bringing the total in the first half of the year to $500.7 million.

“The trade data in the second quarter gives a very strong indication of the sustainability of our economic growth,” the Minister remarked.

The Minister added, “While the second quarter increase in consumer prices for goods and services sold within the Cayman Islands rose to 4.8% in the second quarter of 2018, bringing the cumulative inflation rate to 4% for the first half of 2018.”

“Unfortunately, we have been impacted in this regard by global market dynamics. Fuel prices in general are up,” Mr. McTaggart noted.

Consequently, there were increases in fuel prices for local transport as well as increased airfares and the rate consumers pay for electricity in the second quarter, according to The Cayman Islands’ Consumer Price Index Report: March 2018.

Minister McTaggart also noted that the recent cost of living salary increases that Government has provided for civil servants, coupled with the review of pay scales for those jobs in the service that had seen pay stagnation, including teachers, will help to lessen the impact of an increased CPI on a large segment of the population.

“The uplift for civil servant pensioners as well as to retired Caymanians needing assistance will also help. And of course on 1 November, the personal import duty allowance when shopping overseas will be increased to $500 from $350,” he added.

All three economic reports can be viewed at the ESO website www.eso.ky

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Photo caption:
Minister for Finance and Economic Development, Hon. Roy McTaggart