Economic growth down on predictions
Marco Archer, Minister for Finance and Economic Development
(CNS): The Cayman Islands economy grew by 1.6% in the first half of 2015, which was not only down on the rate of growth for the first half of last year at 2.2%, it is also down on the predictions of more than 2% growth made by the finance minister in his budget address for this year. Following the release of latest national statistics from the Economics and Statistics Office, the lower economic performance was blamed on a slow-down in the growth of the hospitality sector as tourism growth slowed.
But officials also noted a decline in wholesale and retail trade, as well as less activity in the transportation, communication and storage sectors.
“While unplanned, the moderation in growth so far in 2015 is not totally unexpected,” Finance Minister Marco Archer said. “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.”
Real estate, renting and business services as well as construction and the financial sectors improved and the minister was pleased with government’s own performance.
“The fiscal performance continued to improve,” he said. “Central government’s overall fiscal surplus at $115.1 million is 14.8 per cent higher than a year earlier while the central government’s outstanding debt amounting to $520.3 million is 4.9 per cent lower from the same period a year ago.”
Alongside the numbers reflecting economic growth, the ESO also revealed that the Consumer Price Index (CPI) fell in the third quarter by 2.9 percent compared to the same quarter in 2014. This is the third consecutive fall in the inflation figure so far this year mostly as a result in the fall of gas prices.
“The three consecutive quarters of deflation reflects the impact of fuel prices on the CPI,” Archer said. The fall in the fuel price also impacted the value of imports in the quarterly trade figures.
The total value of all merchandise goods imported into the country amounted to CI$178.8 million, for this quarter, lower by 9.1 per cent when compared to the same period last year, when imports amounted to $196.6 million. But the fall was not just down to cheaper fuel as non-oil related goods also fell by 3.3%.
Meanwhile, in the results of the first ever International Investment Position (IIP) Report for the Cayman Islands, officials from the ESO said that investment of non-residents in local financial assets was estimated at CI$119.3 billion by end 2014. This included direct investment of $26.7 billion, portfolio investments of $27.4 billion and currencies, loans, deposits and other investments totalling $65.2 billion.
However, the total investments in financial assets abroad of residents mainly financial corporations and a few non-financial corporations reached around CI$124.0 billion, including direct investments of $21 billion, portfolio investment at $19.8 billion, financial derivatives of $2 billion with currencies, loans, deposits and other investments reaching $81 billion, as well as reserve assets of $99 million.
For more information go to www.eso.ky
Category: Economy, Government Finance, Politics
time to press ahead with a $300m port then!!!……zzzzzzzzzzzz
The ppm are insane to push ahead when all economic and revenue projections are down. They need to wake up, the cash cow (financial services) is not producing as much revenue either so how will they pay for these things to pacify the egomaniacs who have proven to be pi$$ poor money managers for Cayman?
Sweet sour spot Minisyer Archer, don’t coun your chickens before they are hatched. You all have no plans, only to give away our assets and huge concessions for the short term gain. All of these so called educated me,bears of government who can even put together a half decent economic plan and have no understanding of what makes th economy tick. We are outrageously over priced in all sectors of the financial services, our food cost is astronomically high because of the added transportation costs through the US, fuel prices ate being manipulated and in short the goose that laid the golden egg is being choked to death with debt. Sweet spot yeah real sour!
Don’t blame the messenger. Economic forecast is like the weather, one little ripple can change everything.
It’s simple Garbage In Garbage Out.
I blame the arrogance and political rhetoric of the Progressives who will cripple this country and make sure Caymanians will forever remain second class citizens with policy decisions that are harmful to the Cayman Islands.
Well, I was reading an equally authoritative article from the Washington Post and based on their Senior Financial Analyst, the mid-range derivatives are supposed to drop sharply in the new year. Apparently it had something to do with the volatile price of oil coupled with the 4PLAY index. Yes, but talk to the folk at Caledonian and I am not too sure you will get much pushback from them considering how they dropped their pants for the Federal Reserve.
I think the money markets are way too simple for the everyday person to understand and therefore we need to make them more complicated so only lawyers and corporate boffins can handle our cash. You know, the ones that got a 2:2 at uni. Heh, heh, heh.
The sad part of this whole issue is that our “elected” representatives are supposed look after the country and its people yet they play the political games who can build the bigger port or bigger school and in the process our way of life is diminishing our culture lost and our family values are non existence. I dare to ask who and why are we doing all of these things when we are worst off today than yesterday?
Just look at the pathetic SPS document they recently published as the plan for this country for the next 3 years, it would be news if anything in the document actually turns out to be true.
What, specifically makes the SPS pathetic? Or, is it the case that you are so pathetically biased that you really can’t say?
Did you read it? Where are the economic policies? where is the public sector reform? what are the key investments planned and how will those improve the country?
What are the Government’s policies for tackling unemployment? What is the policy on immigration, inflation, waste management, tourism management, criminal justice and other key factors affecting the Cayman Islands?
In other words, where is the big thinking? This isn’t a business plan for a lemonade stand, it is supposed to be a high level strategic document on plans to run the country for the next three years. For all the lawyers and accountants in the PPM, if this is the best they can come up with, I can only hope that calms sees continue in the world economy because they are ill prepared to deal with any challenge of substance.
Blah blah government techno media speak. It means nothing to anybody.
Blah, blah yourself. Make some sense for a change!
Executive privilege is a fine thing.
SMH. Wait until 2016/2017 to see what the economy looks like after the government next spending spree.
What happen to the sweet spot the economy is supposed to be in based on the magic of Marco? More proof he is just like the rest of his arrogant PPM comrades drunk off the power and disconnected to reality.
So you have all of the answers then? We’ll let’s hear them!
Obvious kool aid drunkard… Merry Christmas
marco…. i’ll never forget the day foolio ran rings around you the radio….
very revealing….
Who gives a shit about some radio program/
Sorry, you were hallucinating.
what do you expect from the do-nothing ppm?….
imagine if we did not have dart?
You are confused. In earlier posts you accused the government of doing too much, and in this one of doing nothing. No surprise that you did not give specifics in either instance.
Of course the predictions are wrong. This is government we are talking about…..
Projections are off no surprises there but the Regressives are committed to their plans to further bankrupt the country with projects the country cannot afford. Marco Alden and Moses are in denial.
Same $hit different day with this lot!
What happened? Pissed that you can no longer feed at the trough like you could a few years ago?
Pot cussing kettle bobo. PPM and UDP no differ when it comes to mismanagement and corruption. Thankfully Anthony Eden showed everybody what PPM stands for and its priorities.
Both have interests they look out for even when facts clearly show it is a bad idea for the country. The PPM will be spending over 300 million on a dock to help loyal supporters is just another example of family and friends feeding at the trough PPM style.