Cayman Islands records 2.9% GDP growth in Q1

  • Preliminary estimates show that the Cayman Islands’ economy expanded at an annualised rate of 2.9% in the first quarter of 2025, slightly moderating from the 3.6% growth estimated in Q1 2024. The expansion was broad-based, fueled by sustained demand across core service industries. Notable expansions include electricity and water supply (+4.6%), hotels and restaurants (+4.5%), business activities and administrative services (+4.3%), health and social services (+4.7%), and finance and insurance services (+2.9%). Key infrastructure sectors also posted gains, with wholesale and retail trade up 3.9%, and construction increasing by 2.3%.
  • The performance reinforces a positive outlook, with real GDP projected to grow by 2.6% for the year. The central government recorded an overall surplus of CI$244.8Mn in the year’s first three months. This reflected revenue of $554.1Mn and expenditure of $309.3Mn
  • The central government’s outstanding debt declined to $396.9Mn as of March 2025 from $445.9Mn as of March 2024. Cayman Islands’ economy continued its growth streak in 2024, with real GDP expanding by 3.1% to $5.21Bn, underpinned by expansion across all major sectors. Financial services, which account for over 30% of GDP, had a solid 2.9% increase, driven by robust demand and the jurisdiction’s growing share in global insurance markets.
  • The economic performance for the year was largely driven by the services sector, which accounted for 89.1% of GDP and increased by 2.9%. Actual indicators suggest robust growth in the construction sector (up 3.0%), real estate (+2.9%), other services (up 3.1%), the wholesale and retail trade sector (up 3.7%), and health and social work (up 3.0%).
  • Overall, the 2024 economic upturn signals continued confidence in the Cayman Islands’ development, while pointing to a generally synergistic and integrated economy with complementary sectors. The government ended the year with a net borrowing of $6.5Mn. This resulted from the total revenue of $1,127.1Mn falling below its total expenditure of $1,133.6Mn.
  • Despite the excess spending for the period, the central government’s outstanding debt decreased to $405.2Mn at the end of 2024, representing a 10.6% decrease from the figure recorded at the end of 2023

(Source: Caribbean National Weekly)