Overview For the third quarter 2016, the total value of imports to the Cayman Islands grew by 8.6 percent to reach $194.0 million compared to $178.7 million a year ago (see Chart 1). The increase this quarter maintained the trends shown in the first and second quarters of the
year.

The overall increase emanated from the rise of 11.4 percent in non-petroleum product imports, which accounted for 87.1 percent of the total value of imports. On the other hand, the value of petroleum and petroleum-related products declined, contracting by 7.4 percent to settle at $24.9 million.

The third quarter imports bring the total cumulative value of imports for the first nine months of the year to $586.6 million, 9.2 percent higher than a year ago. Non-petroleum products increased by 13.6 percent while petroleum and petroleum related products fell by 16.9 percent.

Imports by category For the quarter ending September 2016, six of the eight major non-petroleum Standard International Trade Classification import categories recorded
increases in total value.

Machinery and transport equipment went up by 17.8 percent to $41.3 million. This was driven mainly by increases in demand for road vehicles (45.6%), power generating machinery (25.2%), office equipment (47.0%) and other specialised machinery (98.9%). However, telecommunications equipment fell by 17.3 percent to $3.9 million.

Manufactured goods classified chiefly by materials showed a 16.7 percent increase to reach $23.9 million. This was generated mostly from the imports of metal products which grew by 35.0 percent to $12.7 million. Paper and paper related products also rose by 42.5 percent to $1.8 million, while rubber products recorded an increase of 23.0 percent to $1.3 million. In contrast, manufactured non-metal mineral not elsewhere classified fell 5.2 percent to $4.9 million.

Chemical and related products grew by 14.7 percent to $11.2 million in the third quarter from a year ago, due mainly from the increased imports of plastic products, chemical materials and products and essential oils, perfume and cleaning products.

Imports of food and live animals rose by 12.4 percent to $44.1 million. This mainly reflected the movement of vegetables and fruits (up by 13.7%) fish and fish preparations (up by 10.9%), cereal and cereal preparation (up by 97.7%) and miscellaneous product items (up by 13.8%). However, the value of dairy products and meat and meat preparations fell by 0.9 percent and 6.3 percent, respectively.

Miscellaneous manufactured articles expanded by 6.4 percent during the period to reach $25.2 mil- lion. Two of the three largest groups in this section namely furniture and clothing, recorded increases while imports of other miscellaneous goods and photographic equipment contracted.

Mineral fuels, lubricants and related materials fell by 7.4 percent with petroleum products declining by 6.5 percent. This is attributed partly to the fuel prices which remained at low levels and partly to lower quantities. The quantity and value of gasoline and diesel fuel fell, although the quantity and value of aviation fuel increased compared to a year ago.

In the first nine months of 2016, the value of non-petroleum products grew by 13.6 percent to reach $521.1 million, compared to $458.5 million recorded in the same period of 2015.
Machinery and transport equipment led the growth, surging by 35.5 percent to reach $125.5 million in the first three quarters of the year. Machinery specialized for particular industries grew by 183.0 percent, largely due to the increase in construction and mining machinery. Imports of road vehicles were up by 48.7 percent to reach $51.1 million. Additionally, electrical machinery, apparatus and appliances saw a 38.2 percent increase in value.

Commodities and transactions not classified elsewhere grew by 15.1 percent, driven by up- trends in gold coins, gold bullion and other non- gold items. Imports via the airport and courier terminals recorded a slight increase of 2.6 per- cent.

Miscellaneous manufactured articles recorded an in- crease of 9.4 percent and stood at $81.3 million. Ac- counting for this growth was the rise in the value of furniture (28.5%), clothing (16.8%) and reading materi- als (58.9%).

Manufactured goods classified chiefly by materials
grew by 12.2 percent reflecting increases in construction materials, principally iron and steel structures, metal products and other construction materials. Paper products and related paper products also saw an increase in imports.

Crude materials (except fuel) grew by 8.2 percent, while chemical and related products recorded a 12.1 rise, driven by the uptrend in chemical materials, soaps, paints and varnishes
Imports of food and live animals increased marginally by 2.3 percent, compared to the same period in 2015.
For the year to date, the total value of petroleum and petroleum related products fell by 16.9 percent to $65.5 million compared to $78.8 million of the same period in 2015.

For the quarter ending September 2016, imports from the USA grew by 16.0 percent to reach $170.5 million compared to $147.0 million recorded for the same period in 2015. The increase is traced mainly to purchases of manufactured goods, machinery and equipment and miscellaneous manufactured articles.
Imports from South Korea and Japan also increased, traced mainly to an increase in the importation of road vehicles.

Increases in imports were also noted for goods originating from Jamaica (12.5%), and the United Kingdom (87.2%)

A decline of 55.7 percent was recorded in imports from Switzerland, largely resulting from a drop in the purchase of watches.

Goods from Germany and Panama also recorded declines of 2.5 percent and 53.0 percent, respectively.
For the first nine months of 2016, imports from the USA, the United Kingdom, Jamaica, Japan, Mexico and Germany all increased. However, goods from Cuba, Switzerland, Canada, South Korea and Panama all declined.

Imports from Japan recorded the highest growth of 147.8 percent, largely on account of vehicle imports.
Inflows from Germany and Mexico also picked up by 41.2 and 26.1 percent, respectively, reflecting mainly the increase in vehicles and parts thereof during the third quarter.

Analysis of imports by final use, that is, by Broad Economic Categories shows that during the third quarter, all categories of imports rose except for fuel and lubricants and goods not elsewhere specified.

Transport equipment increased significantly by 37.5 percent reflecting increases in road vehicles and specialized equipment imports.

Imports of capital goods continued to grow in the third quarter by 2.1 percent. However, this represents a slow-down compared to the 85.0 percent growth in the first quarter and 25.8 per- cent in the second quarter.

Importation of consumer goods across the various categories was on the uptrend.

Food and beverages grew by 12.5 percent. Processed food for household consumption which comprised the largest portion of this category had a hefty increase of 13.6 percent.

Total imports of consumer goods not elsewhere specified amounted to $37.8 million in the third quarter, increasing by 10.7 percent over the same period a year ago. All three sub-categories recorded strong growth, with non-durable goods recording the fastest pace.

In the first nine months of 2016, every category of imports by final use, except for fuel and lubricants, showed increases.
Transport equipment and parts grew by 37.5 percent, arising mainly from the sharp increases in the first quarter (77.0%) and third quarter (37.5%).

The value of capital good imports recorded a high pace of growth of 32.0 percent which is largely due to the purchase of power generating machinery (up by 22.0%), other specialized machinery (183.0%), industrial machinery (27.2%) and office equipment (26.6%).

Other imports of goods for industrial purposes increased by 17.2 percent of which processed goods grew by 13.0 percent.

Consumer goods also rose, with processed food and beverages mainly for household consumption rising by 3.5 percent, non-durable consumer goods by 13.5 percent and durable consumer goods by 4.8%.

The above (not complete) is taken from THE CAYMAN ISLANDS’ QUARTERLY TRADE STATISTICS BULLETIN: JULY TO SEPTEMBER 2016.

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