The Cayman Islands’ System of National Accounts Report 2020, which presents the economic performance of the Cayman Islands using the Gross Domestic Product (GDP), has been released today, March 30, revealing that while the country experienced an expected contraction, this was significantly less than the rest of the region.
The GDP estimate for 2020, which is based on data collected from businesses and other establishments in the Islands, shows that the local economy contracted by 5.7 per cent, reversing nine consecutive years of positive economic performance.
The domestic economic performance in 2020 is more favourably than the 2020 estimates for the United Kingdom (-9.4%), Latin America & the Caribbean (-6.9%), and the Euro Area (-6.4%) but worse than the declines for Canada (-5.2%), and the USA (-3.4%).
Fourteen of the eighteen industries in the Cayman Islands declined in 2020, led by hotel & restaurant services (-53.2%); transport & storage services (-42.3%); other services, which is dominated by diving & watersport activities (-24.6%); administrative & support services (-7.7%); and manufacturing services (-7.1%).
The only industries to post positive performances in 2020 were professional, scientific & technical activities – comprising primarily of legal and accounting activities (7.0%); human health & social work activities (6.3%); public administration & defense (3.6%); and financial & insurance services (1.0%).
The financial & insurance services industry continued its expansion in 2020, albeit at a reduced rate when compared to 2019. The industry grew by 1.0% in 2020 after increasing by 2.5% in 2019 and 2.4% in 2018.