Economic Growth and Fiscal Performance Sustained in the First Quarter
Economic activity in the Cayman Islands as measured by the gross domestic product (GDP) is estimated to have grown by 2.0% in the first quarter of 2017.
Indicators show that the first quarter economic performance was broad-based. The major sectors that contributed to growth were construction, electricity and water supply and wholesale & retail trade. The financing and insurance sector, which remains the largest sector, grew by 1.4%, continuing its solid performance in recent times.
The performance in the first quarter is consistent with the 2.1% forecasted GDP growth for the year.
The central government recorded an overall surplus of CI$178.1 million in the first quarter. This resulted despite an increase in expenditure (8.2%) as total revenue increased by 2.7%. The increase in revenue was generated mainly from domestic taxes on goods and services, including financial service fees. Total expenditure increased by $11.3 million on account of additions to both current expenditure (by $5.8 million) and capital expenditure (by $5.5 million)
The central government’s outstanding debt fell anew and settled at $481.3 million as at March 2017, lower by 5.3 percent from the same period in 2016.