From Cayman Islands Economics and Statistics Office (ESO)

Foreign Investment in Local Financial Assets Reached $119 Billion in 2014

The first ever International Investment Position (IIP) Report for the country was released today. The IIP shows the end-of-year investment of non- residents in local financial assets, along with the stock of financial assets held by residents abroad.

The total investments of non-residents in local financial assets, which are the foreign liabilities of residents, was estimated at CI$119.3 billion by end 2014. These were in the form of direct investment ($26.7 billion); portfolio investment ($27.4 billion); and currencies, loans, deposits and other investment ($65.2 billion).

On the other hand, by end 2014, the total investments in financial assets abroad of residents (mainly financial corporations and a few non-financial corporations) reached approximately CI$124.0 billion. These consisted of direct investments ($21.0 billion); portfolio investment ($19.8 billion); financial derivatives ($2.0 billion); currencies, loans, deposits and other investments ($81.0 billion); and reserve assets ($99 million).

Other information on the country’s net international investment position for the years 2012 to 2014 are presented in “The Cayman Islands’ Balance of Payments and International Investment Position Report 2014” posted at the Economics and Statistics Office website www.eso.ky

Consumer Price Index Fell by 2.9% in the Third Quarter

The Consumer Price Index (CPI) fell in the third quarter by 2.9 percent compared to the same quarter in 2014. This marks the third quarter of consecutive annual deflation in the Cayman Islands. In the first quarter, the CPI moved downward by 0.4 percent and by 3.6 percent in the second.

“The three consecutive quarters of deflation reflects the impact of fuel prices on the CPI” stated the Minister for Finance and Economic Development, Honourable Marco Archer.

The price index for electricity, gas and other fuels fell anew by 18.4 percent during the quarter over the same quarter in 2014. Water supply and miscellaneous services also declined by 10.7 percent as the fuel cost of generating and distributing water went down. Costs associated with the operation of household vehicles also slid by 8.7 percent.

“However, the deflation is slowing down as shown by the 1.0 percent increase in the CPI index in the third quarter over the second quarter resulting from a rebound in fuel prices,” the Minister further stated.

More information from the Cayman Islands’ Consumer Price Index Report: September 2015 may be downloaded from www.eso.ky.

Growth Estimates by Industry Shows Higher GDP Growth in 2014

The Cayman Islands’ System of National Accounts Report 2014 which presents the economic performance of the various industries contributing to the country’s Gross Domestic Product (GDP) is released today.

“The GDP estimate for 2014 based on data collected from local businesses shows that the local economy expanded by 2.4 percent, exceeding the 2.1 percent early estimate for the year based on indicators reported in the 2014
Annual Economic Report released in July,” the Minister for Finance & Economic Development, Honourable Marco Archer stated.

Sixteen (16) of the country’s 18 industries posted improved economic performance in 2014. Agriculture & fishing posted the highest growth of 8.3 percent. This was followed by other services such as diving and related activities (5.1%); human health & social work (4.9%); hotel & restaurants (4.9%); administrative & support services activities comprising mainly of security and car rental services (4.8%); and professional, scientific & technical activities which mainly includes legal and accounting services (4.4%).

The financial and insurance services industry recorded growth of 1.0 percent in 2014, on the back of the expansions in insurance services (2.6%) and monetary & financial services (0.6%). The 2014 performance of the industry improved on the 0.3 percent growth in 2013.

With the growth in 2014, the country’s GDP per capita in current prices reached CI$48,642, higher by 3.3 percent compared to 2013.

For more information on the “The Cayman Islands’ System of National Accounts Report 2014,” please visit www.eso.ky
.

Falling Oil Prices Continue to Cut Cayman’s Imports

For the third consecutive quarter in 2015, the total imports of the Cayman Islands fell. The total value of all merchandise goods imported into the country amounted to CI$178.8 million, lower by 9.1 percent as compared to $196.6 million in the same period in 2014.

“The decline largely reflects the impact of depressed international oil prices on petroleum-related imports, which continued to rise in quantity,” explained the Minister for Finance and Economic Development, Hon. Marco Archer.

Non-petroleum products, which accounted for 84.9 percent of total imports, fell at a comparatively lower rate of 3.3 percent. Among the major sub-categories, miscellaneous manufactured goods which included professional equipment, furniture parts and road vehicles registered the largest contractions.

More information on the “The Cayman Islands’ Quarterly Trade Statistics Bulletin: July to September 2015,” are available at www.eso.ky.

Economy Grew by 1.6% in the First Half of 2015

The Cayman Islands’ economy grew by an estimated 1.6% in the first six months of 2015, as the first quarter growth of 1.4% further strengthened to
1.7% in the second quarter.

However, the first six months performance is lower than the 2.2% growth for the same period a year ago, due mainly to a slow-down in the growth for hotels and restaurants arising from a moderation in the growth rate of stay- over and cruise arrivals during the period. The wholesale and retail trade and transportation, communication and storage sectors also indicated lower activity.

“While unplanned, the moderation in growth so far in 2015 is not totally unexpected,” the Minister for Finance and Economic Development, Hon. Mr Marco Archer stated. “This is consistent with the International Monetary Fund’s downscaling of global and US growth for 2015, which impacted key local sectors such as hotels and restaurants.”

Nonetheless, improved economic performance was indicated in the following sectors: real estate, renting and business services; construction; other services, financing and insurance services; and agriculture and fishing, mining, quarrying and manufacturing.

“I am, however, pleased to note that the fiscal performance continued to improve,” he added. The central government’s overall fiscal surplus at $115.1 million is 14.8 percent higher than a year earlier while the central government’s outstanding debt amounting to $520.3 million is 4.9 percent lower from the same period a year ago.”

For more information on the “The Cayman Islands’ Semi-Annual Economic Report 2015,” please visit www.eso.ky.