Cayman GDP increased to 3.6% in first quarter of 2024

(CNS): Economic activity in the Cayman Islands, as measured by the gross domestic product (GDP) in real terms, is estimated to have increased by 3.6% in the first three months of 2024 as the country continued its road to recovery after the 2020 pandemic which decimated the tourism sector for over two years.

The return of visitors has helped broad-based growth in economic activity as well as direct improvements in the hotel and restaurant sector, which grew by over 12%, according to the Economics and Statistics Office.

The First Quarter Economic Report, one of several reports recently published by the ESO, shows that despite the improvement in the tourism sector, the financial and insurance services sector remains the largest contributor to GDP.

The sector grew by an estimated 3% for the quarter, fuelling the rise in GDP. In real terms, gross domestic product (GDP) is estimated to have expanded at an annualised rate of 3.6% for the first three months of 2024 and is forecast to expand by 2.8% by the end of year-end.

The real estate and construction industries increased by 3.3% and 2.9%, respectively, during the first quarter of this year, even as government ministers have been implying that development was being hampered by the National Conservation Act.

The ESO said that the economic performance in the first quarter supports the macroeconomic outlook for the calendar year 2024. As the sector approached its pre-pandemic levels, a decelerating pace of expansion was expected in tourism services for the latter part of the year. Despite the normalisation of
accommodation services, activities in financial services were expected to remain robust for the year.

The report offers a snapshot of the economy and government finances for the first quarter, including details such as the number of civil servants employed as of 31 March (4,678) and the number of residential mortgage foreclosures, which, according to data supplied by CIMA, stood at 63 properties valued at US$18.8 million at the end of March. This represents an increase from the 51 properties valued at US$14.6 million in 2023.

See the full report on the ESO website here.