Cayman’s GDP grew by 3.6% in the first half of 2023

| 14/03/2024 | 14 Comments
Cayman News Service

(CNS): According to the Cayman Islands Semi-Annual Economic Report 2023 by the Economics and Statistics Office, the gross domestic product grew by an estimated 3.6% in the first half of last year. However, with inflation running at around 5.3% during the same six-month period, few people benefitted from the expanding economy. The weighted average lending rate rose to over 9% from 6.53%, while the prime lending rate increased to 8.13% from 4.88%, meaning that most people were paying more and earning less.

In addition to reporting the various economic indicators, the document reflects Cayman’s rapidly growing population, with increases of 12.4% in work permits, 7.3% in electricity consumption, and 10.6% in water consumption during the first half of last year.

According to the ESO, indicators suggest that GDP increased by an estimated 4% in real terms in the second quarter of the year, following an estimated growth of 3.2% in the first quarter. This economic expansion in the first half of the year largely reflected increased activities in the tourism sector, which
supported growth in transport, utilities and other sectors.

With the return of tourists, the sector with the sharpest estimated growth was the hospitality industry (hotels, restaurants and bars), which was up by 25.9%. The financial services sector, which is the largest contributor to GDP, expanded by 2.6% during the six-month period covered by the report.

Despite the health of the financial sector and the rebound in tourism, the ESO warned that the robust economic demand in the first half of the year would be undermined by the sustained inflationary and interest rate pressures that dampened demand over the second half of last year.

See the full report on the ESO website.

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Category: Economy, Politics

Comments (14)

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  1. Anonymous says:

    “gross domestic product grew by an estimated 3.6% in the first half of last year. However, with inflation running at around 5.3% during the same six-month period, few people benefitted from the expanding economy”

    Seriously? GDP is invariably quoted in real terms. If real gdp of 3.6 and inflation is 5.3 then nominal gdp is 8.9%! The inference that after inflation the economy is shrinking is seriously shoddy economics.

  2. Anonymous says:

    GDP growth not out pacing inflation means its a ‘real’ degrowth of around 2% – the bubble will burst and it wont be all those new foreign housing speculators paying the bill I can tell you that…

  3. Anonymous says:

    Gouging is profitable.

  4. Anonymous says:

    Growth for growth’s sake with no demonstrated positive impact on the lives of Caymanians is a recipe for disaster.

    • Anonymous says:

      The impact on Caymanians surely is Jobs , as well as the unseen revenue flow to government that provides funds for all the services taken for granted.
      Police, roads, free schooling, medical treatment etc. all paid for without Caymanians having to pay income tax.

    • Anonymous says:

      Except for the thousands of Caymanian business owners, their employees and CIG employees you mean? Seriously, consider the alternative to economic growth “stagnation for stagnation’s sake”, “recession for recession’s sake. “. No explain how either of those has a “positive impact on the lives of Caymanians”. The economic illiteracy on CNS sometimes is genuinely frightening.

  5. Anonymous says:

    only people benefiting from the increased economy is Supermarkets, Gas stations and used car salesmans. Lets not forget the liquor stores. I dont even need to mention CUC! The rest of us live with the miserable traffic congestions and the ever increasing prices for EVEYTHING…This entire government should be voted out. Give me all new faces and they’ll have my vote, i’d rather have inexperience than incompetence and corrupt collusion.

    • Idling in Traffic says:

      So easy to start with remote work schedules to ease the congestion. So easy in fact, that it will not be done as we must reivent the wheel to solve problems and we must not offend the petrol station and landlord industry.

  6. Anonymous says:

    Thanks to the financial sector. I’m just waiting for Kenneth and Juju to take credit for this.
    Some spin on this soon come.


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