THE CAYMAN ISLANDS’ ANNUAL ECONOMIC REPORT 2011

May 2012

The Economics and Statistics Office Ministry of Finance, Tourism & Development

ANNUAL ECONOMIC REPORT 2011

CONTENTS
Executive Summary ................................................................................................. 3 Global and Regional Macroeconomic Environment ........................................... 6 2.1 Economic Growth .............................................................................................. 6 2.2 Inflation ............................................................................................................... 8 2.3 International Finance ........................................................................................ 9 2.4 Regional and International Tourism ............................................................ 11 3. Macroeconomic Performance ............................................................................... 12 3.1 Economic Growth ............................................................................................ 12 3.2 Inflation ............................................................................................................. 16 3.3 Labour Force and Employment..................................................................... 18 3.4 External Sector ................................................................................................. 20 3.5 Money & Credit ............................................................................................... 22 4. Key Sector Developments ..................................................................................... 29 4.1 Financial Services ............................................................................................ 29 4.2 Tourism ............................................................................................................. 36 4.3 Construction ..................................................................................................... 39 4.4 Real Estate ........................................................................................................ 43 4.5 Utilities and Telecommunications ................................................................ 44 5. Fiscal Operations of the Central Government ................................................... 46 5.1 Overview .......................................................................................................... 46 5.2 Revenue ............................................................................................................ 47 5.3 Expenditure ...................................................................................................... 50 5.4 Primary Balance ............................................................................................... 52 5.5 Net Financing and Debt Service Indicators ................................................. 53 6. Macroeconomic Outlook for 2012........................................................................ 55 6.1 Global Outlook ................................................................................................ 55 6.2 Domestic Growth ............................................................................................ 55 6.3 Domestic Inflation ........................................................................................... 57 7. Acknowledgement ................................................................................................. 58 8. Statistical Appendix ............................................................................................... 59 1. 2.

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ANNUAL ECONOMIC REPORT 2011

1.

Executive Summary

1.1 Economic activity in 2011 turned positive following three consecutive years of downturn. Gross domestic product (GDP) rose at an estimated rate of 1.1 percent from a year ago as services sector recovered. 1.2 The estimated mid-year population reached 55,277 falling by 0.4 percent compared to the mid-year population of a year ago. The marginal growth in real GDP and a decline in the mid-year population resulted in a higher real per capita income of $43,202, 1.5 percent higher than the level in 2010. 1.3 Economic growth in 2011 was stimulated by increased demand for stayover tourism services, financial services, business services and real estate. Total consumer goods imports grew by 2.3 percent. Government capital spending and total capital imports increased. 1.4 The financial services industry exhibited another year of mixed performance. New company registrations continued its recovery (11.1%) as well as new partnership (22.9%) and stock exchange listing (3.9%). In contrast, downturns were recorded in mutual funds registration (1.9%), insurance licences (0.3%), and banks and trusts by (4.9%). 1.5 Air arrivals continued with another year of strong growth of 7.2 percent. However, cruise visitors slipped by 12.3 percent which resulted in a 9.3 percent fall-off in the total visitor arrivals to 1.71 million in 2011. 1.6 Construction declined in 2011 albeit at a significantly slower rate, as indicated by the value of building permits which slid to $183.1 million (or 11.0% lower than in 2010). The value of planning approvals also fell by 33.2 percent to reach $220.8 million. Certificates of occupancy rose in value but declined in number. 1 1.7 Real estate activity rebounded strongly as the number of transferred properties rebounded by 5.5 percent to 1,886, while the total value surged to $657.9 million due to a few of large transactions.

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These indicators pertain to Grand Cayman only.

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ANNUAL ECONOMIC REPORT 2011
1.8 The average inflation rate in 2011 was 1.3 percent, higher than the 0.3 percent a year ago due mainly to strong growth of transport, food and electricity indices. 1.9 Total labour force in 2011 was estimated at 37,620, which is 0.8 percent higher than a year ago. The unemployment rate rose slightly to 6.3 percent compared to 6.2 percent in 2010. 1.10 Merchandise imports rose by 10.4 percent to $762.0 million, mainly reflecting a 43.2 percent increase in the value of fuel imports while non-fuel imports increased by 3.1 percent. 1.11 Broad liquidity (M2) contracted by 10.4 percent to settle at $4.8 billion (US$5.7 billion) in 2011. This contraction emanated from an 11.8 percent slump in foreign currency deposits and a 4.6 percent decline in the local currency denominated broad money. 1.12 Domestic credit from commercial banks expanded by $98.5 million to reach $3.1 billion. The public sector indebtedness to the local banking sector increased by 37.1 percent while credit to the private sector contracted by 0.2 percent. Private sector credit declined as a total of $160.2 million were repaid by the services sector, trade and commerce sector and other financial corporations. 1.13 The net foreign asset position of local commercial banks fell by 20.7 percent (or by $615 million) to $2.4 billion. The decline stemmed from a reduction in foreign assets and an expansion of foreign liabilities. 1.14 In 2011, central government’s total current revenue net of current expenditure amounted to a surplus of $18.9 million from a deficit of $3.9 million a year ago. Similarly, the overall balance (total revenue minus total expenditure) recorded a smaller deficit of $80.3 million, compared to a deficit of $88.5 million in 2010 due to unexpected growth in revenue. The central government’s total outstanding debt expanded by 3.5 percent to $613.4 million (or 24.9% of GDP) as at December 2011. 1.15 GDP growth projection for 2012 is placed at 1.8 percent, in view of expected continued growth in tourism, construction and financial services. Inflation rate in 2012 is expected to be higher at 2.1 percent arising from oil price increases.

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3 1.0 (1.2 416.5) (3.165 56.5 272.752.106.517 31.7 24.3 762.307.267 6.8 144.4 5.1 1.445.3) (2.1) 137.9 (3.863 355.7) 592.411.421 2.559 43.6 (88.4 3.325 55.510. 5 .2 0.4) 132.5 2.277 35.7 (203.597.523 808 266 136 1.958 6.ANNUAL ECONOMIC REPORT 2011 Indicators Real GDP ($million)* GDP growth in real terms (percent)* Real GDP per capita (in $)* Nominal GDP per capita (in $)* Nominal GDP ($million)* The Cayman Islands Economic Performance: Summary Indicators 2009 2.005 31.507 35.468.1 1.6 (6.064 183.2 55.202 44.3 1.157 205.9) 43.3) (3. in $million) Domestic credit (outstanding balance.657 2.983 6.850 2010 2.438 768 246 127 1.979 55.8 9.242 2011 2.5) 744.0 1.1 56.520.3 690.1) 513.9 3.5 29.5 4.6 330.312 7.9 0.280 44.8 5.349 Population (year-end) Of which Caymanians Population (mid-year) Employment Unemployment rate (percent of labour force) Inflation rate (percent) Total imports (in $million) Total imports (percent of GDP) Overall fiscal balance of the central government ($million) Overall fiscal balance of the central government (percent of GDP) Outstanding debt of the central government ($million) Outstanding debt of the central government (percent of GDP) Stay-over tourists (in thousands) Cruise ship passengers (in thousands) Total money supply (stock M2.4) 42.0 434.949.4 (1.0 30.5 20.836.1 251.036 30.3) 613.0 (0.429 2.9 (80.1 43.6 2.6 9.521 34.008.2 5.5 316.1 9.8 657.4 28.362. in $million) Mutual funds Insurance licenses Banking and trust licenses Trust companies Stock exchange listings New company registrations Grand Cayman building permits ($million) Cayman Islands planning approvals ($million) Cayman Islands property transfers ($million) Electricity consumption (percent growth) Water consumption (percent growth) Total fixed and mobile telephone lines *Estimated.4 24.156 9.113 8.6) (8.401.258 766 234 123 1.5 55.388.9 309.7 288.

9 1. This review is based on information culled from the International Monetary Fund and other international organizations. Canadian economic output expanded in 2011 at a rate of 2. 2.9 1. although 1.2 percent in 2011.5 6.7 percent during the year as policies geared at improving domestic-driven economic activity resulted in improved financial conditions which supported private demand and increased employment.7 0.5 5.2 6.1: Global Economic Growth 2008 World GDP Advanced economies US Euro area Japan UK Canada Emerging market and developing countries China India 3. Economic conditions in the advanced economies became fragile.2 percent growth recorded in 2010 but an improvement on expectations. Global and Regional Macroeconomic Environment The year in review marked an expansion of the global economy albeit lower than the previous year with varying degrees of growth across regions.2 -2. Economic activity in the United States of America (US) expanded by 1. resulting in a growth of 1. However.9 -6.6 3.1 -2.2 7.ANNUAL ECONOMIC REPORT 2011 2. lower than the 3.7 1.5 10.5 3.3 4.1 0.3 2009 2010 2011 3.1 1.2 in Percent (%) -0.4 -0.0 0.1 9.1 Economic Growth Global output growth in 2011 slowed to 3.3 percentage points lower than the preceding year (see Table 2.6 1.9 -0.7 9.4 10.9 percent from the 5.4 3.6 0.3 percent in the preceding year.0 7. this represents an improvement from the weak and vulnerable recovery expected a year ago because of the legacy of the financial crisis.1).5 6.7 2.6 percent in 2011.9 2.2 2.8 7. Emerging and developing countries expanded strongly at a rate of 6. Similarly.2 9.3 -3.0 -4.4 -4.7 0. Table 2.5 percent.6 Source: International Monetary Fund (April 2012) 6 .

7 4. Haiti (5. Antigua and Barbuda.0 -1.4 -5.ANNUAL ECONOMIC REPORT 2011 The Euro area recorded economic growth of 1.2 0. Suriname (4.5%).4 -8.2 percent.4 in Percent (%) 0.3 -1.7 percent.5 -1.5%).4 1.5 1. Vincent & the Grenadines 2.7 -5.1 percent while Greece.2 2.8 percent which is lower than the previous year but higher than 2009. Kitts & Nevis St.3 0. The 2011 growth in emerging and developing economies was led by China with 9.2 percent and India with 7. Kitts and Nevis. The Caribbean region grew by 2.5 -0.3 -0. Vincent and the Grenadines recorded economic contraction in 2011.5 7.9 -1. Some periphery countries from the Euro area were challenged with sovereign debt crisis and a general loss of confidence.4 3.5 0. St.8 1.4 percent in 2011.8 Source: International Monetary Fund (April 2012) 7 .9 0.3 1.0 0. However.7 -5.2%) propelled by resilient domestic demand although external demand dimmed.0 5.3 -3.8 2.4 -1.0 0. The United Kingdom (UK) also posted a growth of 0. Table 2.8 1.1 -10.3 -2.2 -0.3 -0.2: Caribbean Region Economic Growth 2008 Caribbean Bahamas Barbados Trinidad & Tobago Jamaica OECS Antigua & Barbuda Dominica Grenada St. Emerging and developing economies posted another year of strong economic expansion (6.1 -2.0 -4.6%) and Guyana (4.6 2009 2010 2011 2. as countries recovered with uneven pace with Germany leading the growth at 3.7 -0.8 -0.6 -1.2%). due largely to strong growth in the Dominican Republic (4. and St.2 -3. growth in some of the English-speaking Caribbean economies remained subdued as Trinidad and Tobago.7 3.3 -2. Lucia St. Portugal and Slovenia declined.

0 7. then eased to about US$100 a barrel.0 -1. Figure 2.5 12.0 6.1 0.1 7.0 2009 2010 2011 7.4 8.0 9.2 percent in 2011 from the 7.3 US Emerging markets and developing countries Advanced economies 2009 2010 2011 Source: International Monetary Fund (April 2012) Inflationary pressures in the Caribbean were marginally stronger resulting in an average inflation rate of 7.5 9.6 1.5 in Percent (%) 3.0 4.3: Inflation Rates: Caribbean Region 2008 Caribbean of which: Bahamas Barbados Trinidad & Tobago Jamaica 12.0 3.ANNUAL ECONOMIC REPORT 2011 2.0 1.2 2.0 2.7 1.0 4.7 7. Commodity prices remained high but were marginally lower than the previous year while oil prices moved higher.7 percent among advanced economies in 2011.8 10.2 Inflation Inflation surged to 2.1 3.6 7.2 1.0 22.5 2. led by the US with 3.1 percent.1 percent due to strong domestic demand coupled with tighter monetary policy and higher energy prices.1 percent of the previous year.4 5.1 7.6 3. fuelled mainly by higher energy prices in most countries. The general price level in emerging markets and developing countries grew at a much stronger rate of 7.0 6.1 12.6 Source: International Monetary Fund (April 2012) 8 . Table 2.0 5.1 Percentage 5. Oil prices rose sharply during 2010 and early 2011 to about US$115 a barrel.1 2.0 5.1 -0.1: Comparative Inflation Rates: 8.0 0.

3 The Bank of England’s key interest rate is also called current official bank rate.3 International Finance The overall fiscal deficit among advanced economies continued to improve.9 percent in 2010. It is viewed as an indicator of the financial impact of governments’ activity on the rest of the economy.1 percent of GDP in 2011 while the UK fiscal deficit in 2011 move down to 8. Bank of Canada also maintained its key interest rates during the year at 1.5 percent. in the last quarter reverted it to 1. as it narrowed from 10.ANNUAL ECONOMIC REPORT 2011 2.6 percent of GDP in 2011.5 percent of GDP in 2010 to 9.0 percent (see Figure 2. 2 9 . Interest rate policies across our major source markets remained stable in 2011. The Bank of England maintained its interest rate 3 at 0. the Federal Reserve maintained its interest rate from December 2008 to a range of 0 to 0. the overall fiscal deficit of the Euro area improved from 6. Similarly. The US general government’s fiscal deficit or net borrowing 2 narrowed from 10.7 percent of GDP from 9.7 percent in 2011 due to fiscal tightening. 4 The ECB’s key interest rate is for main refinancing operations which provide the bulk of liquidity to the banking system. however. Likewise. In the US. Net lending/borrowing is equal to total revenue less total expenditure less net acquisition of nonfinancial assets and liabilities.2).0 percent in 2009 and to 8.7 percent in 2010 and now to 7.0 percent in an effort to stem the fiscal crisis that engulfed the region.2 percent of GDP in 2010 to 4.25 percent and recently announced its intention to hold it stable until 2014. in an effort to balance growth activity in the Euro zone economy. the European Central Bank in the second and third quarters raised the key interest rate 4.

70 0. Euro and the UK pound for the first half of 2011.S dollar generally appreciated against the Canadian dollar.30 1.3.20 1. Figure 2.40 QTR QTR QTR QTR QTR QTR QTR QTR QTR QTR QTR QTR QTR QTR QTR QTR 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 2008 2009 Can ada $ Euro 2010 Pound 2011 Source: United States Federal Reserve Bank 10 . at End of Quarter) Source: Bank of England.ANNUAL ECONOMIC REPORT 2011 Figure 2.60 0.3: Average Quarterly Foreign Currency per U.50 0.90 0.2: Key Interest Rates (%.80 0.S dollar 1. however.10 1. Federal Reserve Bank.00 0. All currencies pegged to the US dollar (including the Cayman Islands dollar) would have followed the same path as the US dollar during the review period. it depreciated slightly in the last half of the year as exhibited in Figure 2. European Central Bank & Bank of Canada The U.

4 Regional and International Tourism 5 Based on recent World Tourism Organization (WTO) figures. 5 Sources of basic information: World Tourism Organization website. Majority of the Canadian arrivals in 2011 visited destinations such as Cancun.2 percent.3 percent to reach 238 million as the main source markets were impacted by various factors including continued high unemployment levels and unsteady fuel prices.7%). British Virgin Islands and the Cayman Islands) expanded by a combined rate of 2.8 percent. Bermuda.e.2%). 11 . Suriname (7. When examined separately. Europe displayed the strongest growth when compared to emerging regions. while destinations in the Mediterranean also profited from improved outbound flows from markets such as Scandinavia. the Commonwealth countries (i. In contrast. Caribbean Tourism Organization website. weak economic conditions in the European markets impacted results within the Caribbean as arrivals from the region grew by 1.4 percent to tally at 980 million in 2011. CARICOM. part of the growth in the Southern Mediterranean Europe resulted from “a shift in traffic away from the Middle East and North Africa. Specifically. Canada maintained its lead as a growing source market with inflows to the region rising by 6. As revealed by the Caribbean Tourism Organization (CTO). global tourist arrivals grew by an estimated 4.2%) and Barbados (6. Among the individual countries. the Caribbean regional tourism market grew at a slower rate of 3.2 percent. Cuba (7. the Cayman Islands (7. Among the sub-regions. Germany and the Russian Federation.” Meanwhile. Cuba and the Dominican Republic as in previous years. the strongest growing countries in terms of stay-over arrivals in 2011 were Curacao (14.8 percent increase noted for the Organization of Eastern Caribbean States (OECS) and the 1 percent rise in arrivals to the other CARICOM countries.3%). This was largely associated with the modest 1.ANNUAL ECONOMIC REPORT 2011 2. boosting the overall results for advanced economies.9%).

7 48.280 42.1 (5.6 2. The 2011 population upturn resulted. 3. Macroeconomic Performance The domestic economy rebounded to improve real per capita income.927 43.637. and real estate.202 as GDP expanded coupled with a lower mid-year population (see Table 3.7) 2010 2.5 2. renting and business activities sectors. Real Gross Domestic Product (GDP) in 2011 was estimated to have expanded by 1.9) (3.9 2009 2.202 2.2 percent increase in value added within the services sector which accounts for approximately 94. as the full effects of the roll-over policy was mitigated with temporary policy measures which included Term Limit 12 .2 (3.388.5 percent to $43.8 2.ANNUAL ECONOMIC REPORT 2011 3.468.4) (6.510.year population figures. The general price level increased modestly mainly due to higher international fuel and food prices.9) 2011 E 2.5 0. as the population as of end 2011 grew marginally.1 Economic Growth In 2011.411.3 46.1: Cayman Islands’ Gross Domestic Product 2007 GDP at Current Prices ($M) Current GDP growth (%) Per Capita GDP at constant 2007 prices (CI$) GDP at constant 2007 prices ($M) Real GDP growth (%) 1 E 1 2008 2.637.445.1).1 (0.4) 1. However.4 2.9 2.5 billion. This was largely influenced by an estimated 1.362.661.627. Table 3.9 percent of GDP.763 2. especially within the hotels and restaurants. The latter is traced to a reduction in the transient portion of the population (non-Caymanians) as of end 2010. The increased economic activity originated in the services sectors. domestic output staged a turn-around following three consecutive years of contraction.1 percent to reach $2. Preliminary estimates based on sector economic indicators Source: Economics & Statistics Office Per capita income at constant prices rose by 1.1 4.1 7.559 43. the unemployment rate remained high.1 Using mid.

6 The Certificate for Specialist Caregivers is for persons who have worked in the Cayman Islands as a domestic helper. which allowed expatriate labour to stay longer on the islands. storage and communication fell by 1.1 percent. insurance services declined by 1. and renting and business activities. Financing and insurance services which accounted for approximately 41.4 percent as growth in stay-over tourism transportation was outweighed by the estimated declines in cruise visitors. Expansion in economic activity was strongest in hotels and restaurants.1). real estate. will allow them to remain employed in the Islands.2 percent drop in building permits although imported building materials more than doubled partly due to duty free concessions from a one-year building incentive Term Limit Exemption Permit which.4 percent as a result of higher quantity of stay-over visitors (see Section 4.3 percent and 23. and wholesale and retail trade. This resulted as financing services expanded by 1. either for their last employer or for a new employer. as both business services and real estate activities picked up based on the value of property transfers and registration of new companies.4 percent. A Certificate for Specialist Caregivers is issued for a (renewable) period of five years and entitles the holder to continue to work for their present or former employer.2. the hotels and restaurants sector was estimated to have increased by 6.9 percent of GDP was estimated to have expanded by 0.7 percent for 2009 and 2010 respectively.ANNUAL ECONOMIC REPORT 2011 Exemption Permits 6 and a Specialist Caregiver Certificate 7.8 percent a year ago (see also Section 4. Construction activity fell for the third consecutive year. following previous reductions of 29. cargo transportation and telecommunication activities.2).3 percent. However. nanny or nurse or in some other care-giving capacity for a sick.4 percent as indicated by the growth in imported consumer and intermediate goods.1 percent based on anticipated higher earned interest in the local banking sector and a stable flow of financial services.6 percent compared to a decline of 4. Real estate. renting and business activities was estimated to have grown by 3. Transportation. The current decline is associated with a 12. financing and insurance services. this time by an estimated 1. due to the expiry of their term limit. As shown in Table 3. are no longer able to continue in that employment. Wholesale and retail trade activity increased by 1. for up to two years from 28 October 2011 even though their term limit has expired. 7 13 . if granted. elderly or handicapped person and who.

ANNUAL ECONOMIC REPORT 2011 scheme. 14 . The smaller decline in construction was supported by an increase in government investment expenditure by 17. The value added of government services fell by 0.2 percent due to the combined effects of lower staff levels.2 percent through capital and net lending expenditures of the central government as the construction of school continued (see Section 5). reinstatement of the cost of living adjustment in December 2011 and higher government consumption expenditure (see also Section 5).

8 2.1 129.1 3.4 6.4 168.6 (6.9 2.1 244.4 2.2 323.1 17.9 137.0 8.5 134.9 20. *Financial Intermediation Services Indirectly Measured (FISIM) is the difference between the interest rates charged to borrowers and the interest rates paid to lenders.265.6 199.3 328.0 34.9 78.3 59. It is an implicit charge to customers for the service provided by financial intermediaries.4) 25.0 206.7) (1.8) (1.7 82.5 1.3 2.2 8.6) (2.5 201.4 120.4 (1.5 54. Renting & Business Activities Business Activities Real Estate Administrative & Support Services Producers of Government Services Other Services Financial Services Indirectly Measured (FISIM)* GDP constant at basic prices Growth (%) 29. Source: Economics & Statistics Office 15 .627.5 323.8 49.429.2 80.3) 1.2) (0.2 221.0 216.3 369.7 18.4 314.8 (0.9 317.5 92.2 993.3 125.2 (0.1 (4.5 58.291.9 8.6 49.4) 0.2 24.4 2.225.2: Real GDP at 2007 prices by Sector ($ million) 2008 2009 2010 Millions of Cayman Islands Dollars Primary Sector Agriculture & Fishing Mining & Quarrying Secondary Sector Manufacturing Construction Services Sector Electricity & Water Supply Electricity Water Supply Wholesale & Retail Trade.8 584.3 36.3 93.9) 27.445.1 21.9 34.2 75.2 999.8 2.7 602.0 21.4 8.9 (3.3 214.7 587.7 1.3 338. Bars Transport.5 100.3) 1.9 26.6 3.9 592.5 142.2 206.4) 29.3 217.2 0.ANNUAL ECONOMIC REPORT 2011 Table 3.237.1) (6.2 95.3 2.362.2 93.8 76.2 51.4 79.6 21.1 % Change 2011 E E Preliminary estimates based on sector economic indicators.1 3.388.2 329.0 213.3 98.8 97.9) (2.7 1.1 389. Storage & Communication Financing & Insurance Services Real Estate.7 2.0 489.2) 0.6 213.1 1.5 59. Repairs & Installation of Machinery Hotels & Restaurants incl.9 365.0 209.043.5 314.3 34.4 58.8 (0.

3).3 3. inflation can be traced mainly to the sharp movement of fuel prices and higher food prices. consumer prices rose on average by 1. all major categories of CPI inflation increased except housing and utilities (see Table 3. Goods and Services Overall CPI Inflation Avg Inflation Rates (%) 2011 2010 3. The average food inflation in 2011 stood at 3.6 0. The indices for restaurants and hotels.5 percent.3 0.2 -0.1 -1.1 1. health and household increased by 1.2 8.3 percent in the preceding year.2 1. as compared to 0.3: Average Inflation Rates Categories Food & Non Alcoholic Beverages Alcohol and Tobacco Clothing and Footwear Housing and Utilities Household Equipment Health Transport Communication Recreation and Culture Education Restaurants and Hotels Misc.3 percent.7 percent since the second quarter of 2008.2).9 1.7 5. Table 3.1 2.6 1.6 percent which was affected by higher cost associated with higher prices of fuel and lubricants during the period.6 1.0 0.4). Since the rebased CPI index in the second quarter of 2008 (see Figure 3.9 percent.1 1.3 Source: Economics & Statistics Office During the year. having been positive in all four quarters of the year and with stronger average growth in the last two quarters (see Table 3.0 1. food and non-alcoholic beverages index held a more or less consistent upward trajectory.ANNUAL ECONOMIC REPORT 2011 3.0 10. The main reasons are high international oil prices arising from a recent boom in bio-fuels and increased demand for agricultural commodities coupled with adverse weather conditions in the major source markets.2 -4. The transport index recorded the largest average increase of 10.0 percent while education and miscellaneous goods and services grew by 0.5 0.1 1.9 1.0 0.5 0.0 10. The food index stood at 114.7 which increased by approximately 14.2 Inflation In 2011. 16 . For the second consecutive year.3 0.

and oscillated between US$100 per barrel and US$115 per barrel for the remainder of the year. 17 .0 QTR QTR QTR QTR QTR QTR QTR QTR QTR QTR QTR QTR QTR QTR QTR 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 2008 2009 Non-Food 2010 Food 2011 97.6 99.ANNUAL ECONOMIC REPORT 2011 Figure 3.0 110.5%.0 100. Overall.1: Food and Non-alcoholic Beverages vs.4.0 95.7 percent in 2011 which is indicative of the dampened impact of housing and utility component on the annual inflation.0 115.0 90.4 percent which exerts significant influence on the rate of inflation. consumer price index inflation when housing and utilities is excluded averaged 2. The others are displayed in Table 3. 8 The electricity inflation for the fourth quarter of 2009 was 9.6 97. the average price of electricity increased continuously since the fourth quarter of 2009 8 as international oil prices surged during the first four months of 2011 from US$95 per barrel to approximately US$115 per barrel.1 108. In 2011.6 114. Meanwhile.0 percent despite a hike in electricity inflation of an average 19.1 105. Non-food Inflation Indices 120.4 percent.0 105. average housing and utilities inflation declined by 1. Housing inflation (housing excluding utilities) was influenced by the combined forces of actual rental for housing which on average went down by 0.7 Source: Economics & Statistics Office The housing and utility index is the highest weighted category of the consumer price index basket at 39.2 percent.0 85.2 percent and the imputed rentals of owner-occupied housing which fell by 7.

4 1.5 2. mining and quarrying (-7.3 percent.1 percent to 15. those with higher employment include households (20.0 -0.5 1. Food & Housing & Electricity Utilities -0.8%) and education (-6.2 0. Caymanians benefitted most with the number of employed Caymanians rising by 1.3%) and related manufacturing.2 -6.3 3.0%) and accommodation industries (3.2).0 19.7 -0.3%). Excluding.8 21.9 2.732 persons resulting in a Caymanian 18 .7 -0.5 percent decline a year earlier.0 -4.ANNUAL ECONOMIC REPORT 2011 Table 3.9 2. financial services (-2.7 1.2 percent (284 persons) to 35. employment inched up by 0.4 3.3 2.969 compared to the 0.0 1.2 2. The labour force edged upwards by 0.8 23.0 -4.1 Food Inflation 1.2 0.5 -0.8 -2. After weakening in 2009 and 2010.2 CPI Inflation QTR 1 QTR 2 2010 QTR 3 QTR 4 Annual average 2010 QTR 1 QTR 2 2011 QTR 3 QTR 4 Annual average 2011 0.0 2.0%).3 Labour Force and Employment Labour market indicators improved slightly in 2011. Amongst the employed.3 0.4 1.4: Selected Quarterly Inflation Rates % Change over the same Quarter a Year Ago CPI: CPI: Excluding.0 28.5 3.3 14.9 1.7 0.4 2.0 5.8 percent to settle at 37.5 3.3 0.6 4. The overall number of unemployed persons totalled 2.4 0.7 Housing & Electricity Utilities Inflation Inflation -2.353 with the unemployment rate rising by 0.6 3.6 0.3 0. Among the industries.3 1.0 -0.5%).8 3.3 -1.5 3. supported by modest economic growth and a slight increase in the population.3 2.2 2.0 0.9 -4.9%) (See Figure 3.1 percentage points to 6.5 -0. Strong tourist arrivals also supported employment growth in the transport and storage (4.5 15.3 0.5 Source: Economics & Statistics Office 3. Shrinking employment activity persisted in construction (-6.620 partly recovering from the 2.8 22.1 13.8 -1.0 2. administrative and support service activities (10. The number of Caymanians unemployed reached 1.7 -0.5 3.0 -1.068.7 19.2 1.6 percent increase for Non-Caymanians.9%).6%) and real estate activities (2.6 -2.9 2.3 Non Food Inflation 0.4 24.

3% Employment by Industry 2011 Wholesale and Retail 4.807 19.000 Unemployment Rate (%) 3.707 Activities of households as… 3.1 percent with 621 persons recorded as unemployed.1% 3.036 45.325 23.1%).853 Professional.459 Education 1.ANNUAL ECONOMIC REPORT 2011 unemployment rate of 9.2: Summary of Labour Force Indicatorsa 2010 Population Working Age Population Labour Force Total Employment Total Unemployed Unemployment Rate (%) Caymanian Population Working Age Population Labor force Employed Unemployed Unemployment Rate (%) Non-Caymanian Population Working Age Population Labor force Employed Unemployed 24. The unemployment rate for NonCaymanians remains substantially lower at 3.452 recorded a year ago to 19.620 35.701 15.983 2. gas. households with employees (10. steam and air… 438 Agriculture and Fishing 268 Not Stated 71 Extra-territorial organizations 4 .004 Transportation and Storage 1.000 4.276 Administrative and support… 2.8% 55. Figure 3.068 37.0%) and public administration (8.881 19.330 6.227 Construction 3.3%).000 2.309 17. scientific and… 2.852.8% 31.2% 2011 55.450 37.298 621 30.266 Arts.353 6.1 percent decline in 2010.data for 2010 is from the Census and 2011 is from the Labour Force Survey Source: Economics & Statistics Office As depicted in Figure 3.535 General public administration… 2.750 Restaurants and Mobile Food… 1.5%). 19 .637 Financial Services 3.057 21.2. Mining and… 763 Information and communication 707 Real Estate Activities 549 Electricity. as measured by work permits issued by the Immigration Department.979 23.1% a.569 17.8 percent in 2011.189 618 24. a smaller fall than the 13.1.919 19.267 2.517 45.313 34.000 3. entertainment and recreation 980 Other service activities 951 Manufacturing.359 Human health and social work… 1. the wholesale and retail industry continues to account for the largest number of employment with 12.759 19.712 9. continued to subside in 2011 although the rate of decline moderated from the strong downturn a year earlier. work permits contracted by 2. financial services (10. This is followed by construction (10.192 21.506 15.000 5.794 1.464 Accommodation 2. Foreign employment levels.732 9. At the close of the year.969 1.9 percent from the 20.0 percent of total employment.

9 14.0 18.ANNUAL ECONOMIC REPORT 2011 3.8 percent to 210.4 million while non-oil related imports expanded by 3. Overall.4 15.2 percent to total $183. The value of imported consumption goods increased by 2.0 million 9.1 percent to total $581.2 55. Capital goods increased by 9.3 $ Million 1000.0 12. Oil and petroleum products import increased by 43.4 17.0 2001 2002 2003 976.7 762.1 15. However.5 690.5 50. Total merchandise imports rebounded in 2011 to grow by 10.4 2004 2005 2006 2007 2008 2009 2010 Consumption goods Fuel and lubricants Intermediate goods Capital goods Total Imports Source: Economics and Statistics Office Contributing to the growth in value of fuel imports during the period was the increase in the fuel volume.0 2011 2010 2009 2008 0% 45. The latter may be partly due to the reduction of import duty on building materials from 22 percent to 11 percent.4 20.0 million imperial gallons.3 13.0 20 . albeit at a lower percentage of 4.0 700. 2011 300.0 percent.3: Imports by Broad Economic Categories 1100. All types of fuel imports increased during this period.2 thousand tons.0 800.4 percent to reach $762.5 thousand tons in 2011. imported aggregates which is used in the construction sector increased by 8.0 500.8 percent while intermediate goods declined by 3. supported by strong growth in stay-over tourism. Figure 3.0 600.1 18.1 percent.8 16.3 14.6 49.0 900. the volume of imported cargo declined by 2.1 percent of total imports. The growth in trade was predominantly from higher value of oil and petroleum products imports which accounted for 24.4 898.2 percent to 143. 9 Value of imports and export includes cost of insurance and freight. a concession granted by Cabinet for 2011.8 million. to reach 53.3 percent.2 23.4 External Sector Imports.5 50% % Share 100% 514.0 400.

4 52. up by 1.0 230.9 53.0 35.5 percent to $455.9 50.3 percent increase compared to the previous year.2 Cargo ('000 tons) millions of imperial gallons 55. The country’s current account deficit was estimated to have widened by 11. Inflows from tourism visitor expenditure and financial services dominated the inflow of funds.0 2006 2007 2008 2009 2010 2011 150.4 260. Current Account.0 million.2 Source: Customs Department and Port Authority of the Cayman Islands Exports.6 50.0 170.0 250.0 million.7 44.0 269.0 270.5) due mainly to an increase in outflow of funds arising from higher merchandise imports. Meanwhile.4: Quantity of Imported Fuel and Cargo Total Fuel 60. Tourism visitor expenditure was estimated at $398. 21 .2 256. receipts from financial services rose by 4.2 million.0 40. a 70.ANNUAL ECONOMIC REPORT 2011 Figure 3.2 245.0 54.4 percent of GDP in 2011 (see Table 3.7%) compared to 2010 (3. or 18.0 2006 2007 2008 2009 2010 2011 210.0 290. Total merchandise exports in 2011 reached $19.0 45.9%).0 190.9 percent to $415.0 210.0 million as new company registrations rebounded. In addition. the growth in receipts was at a slower pace in 2011 (2. Workers remittances narrowed as less money are remitted due to a reduction of work permit holders.4 percent despite strong growth in air arrivals in view of a large reduction in cruise arrivals.0 50.0 216. This was due mainly to re-export of goods.

3) (408.5: Balance of Payments (in CI$ million)* 2008 Current Account Balances Trade balance Exports.1 (1. net Current Account Balance Percent of GDP (%) Financial and Capital Account.6) 40. The decline in foreign currency deposits was triggered by a reduction of US dollar-denominated deposits by 10.0 501.0) 1.7 (711.141.2) (16.7 (658. This could have resulted from the 22 . f.8 percent slump in foreign currency deposits coupled with a 4. f.8 (9. net Receipts o/w tourism visitor expenditure o/w financial services Payments Net income Transfers.1) 28. broad liquidity narrowed further by 10.7) 419.2) (177. After falling by 10.4 379. The contraction in 2011 emanated from an 11.4 2011 E (645.2) (109.8 1.o.4) (444.6 percent decline in the local currency money supply (M2).6). Broad liquidity (M2) comprising CI dollar-denominated money and foreign exchange deposits contracted for the second consecutive year. net* Balance of Payments Change in Reserves** E 2009 (619.b.3 378. Services.217.b – Free on board (excludes insurance and freight) * Includes overall errors and omissions ** Changes in foreign currency reserves of the Cayman Islands Monetary Authority’s Currency Board Source: Economics and Statistics Office 3.0 (685.3) (758.7) 38.5 percent.4) (158.o.4 395.4) 9.5 Estimated based on selected economic indicators f.7 433.1) (16.185.4) 464.8 percent in 2010.280.5 Money & Credit Broad Liquidity.6) 474.4 (786.3 (5.8) (139.2) (16.7) 439.5 and Table 3.b.8) 33.5 1.9) 398.6 1.5 1.2) (182.0 (728.3) (455.0 415.7 392.7) (87.4) 460.o. Imports.8 (618.3) (155.2 398.0) (18.0 (675.0 (676.0 2010 (584.ANNUAL ECONOMIC REPORT 2011 Table: 3.752.5) 605.6) (142.9 million in 2011 (see Figure 3.3 5.8) (420.7 (4.5) 4.6) 488.4 percent to settle at $4.

0 2009 Loans-to-Deposits Ratio 57.9 million.6 percent while currency in circulation expanded by 5.0 60. Broad money comprising of local currency (KYD) deposits and currency in circulation fell by 4.000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2009 2010 2011 Source: Cayman Islands Monetary Authority & ESO The contraction in broad liquidity was associated with a 20.3 million (or 2.5: Liquidity Indicators 9.6 percent as compared to 57. this ratio averaged 66.7 percent reduction in net foreign assets of local commercial banks.4 66.0 40. Figure 3.6 7.0 30.3 percent.0 35.752.000 5.6 48.000 6.6 percent to $935.0 45.4 4.0 65.949.5 percent) as domestic credit rose by 3.000 5.307.000 Money Supply 70.9 Percentage (%) CI$ Millions 8.6 percent in 2010.ANNUAL ECONOMIC REPORT 2011 outflows of foreign currency in search of higher returns in the wake of a dimmed global recovery and minimal local investment opportunities. The overall loan-to-deposit ratio of commercial banks increased due to marginally higher loan balances and a simultaneous significant reduction in local and foreign currency deposits amounting to approximately $559 million. the increase is traced to higher government borrowings during 2011. Net domestic assets rose by $55.3 percent. In 2011.0 55. This resulted from a decrease in KYD deposits by 5. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2011 23 .6 5.000 4.0 50.

9 2.989.3) (757.987.968.056. CIMA’s NFA rose by $5.6 3.579.6 3.1 237.724.1 2.8 88.4 2.307.1 2.1 4.0 4.5 Dec-10 5.7 172.632. The ratio of foreign currency-denominated liabilities to total liabilities (a financial soundness indicator which measures the relative importance of foreign currency funding within total liabilities) stood at 80.2 Source: Cayman Islands Monetary Authority & ESO Net foreign assets.5 5.2) 5.1 250.9 89.316.3 34.5 percent due to reductions in balances in banks and branches.880.8) (10.7 83.6 934.7 percent during the period (see Table 3.352.7 846.008.2 (0.7 94.5 3.7 54.981.8 percent in 2009.2) (800.8 84.5 89.7) 2.1 101. The reduction of commercial banks’ NFA stemmed from an increase in foreign liabilities by 16.1 2.6 2.2 895.568.2 3.106.3 (5.5 4.4) (20. Net foreign assets (NFA) of the Cayman Islands Monetary Authority’s (CIMA) expanded by 5.3 4.2 1.6 85.326. in CI$ million % Dec-08 Total Assets Net Foreign Assets Monetary Authority Commercial Banks Net Domestic Assets Domestic credit Claims on central government Claims on other public sector Claims on private sector Other items net Broad Liquidity Broad money (KYD) M2 Currency in circulation KYD Deposits Demand deposits Time and savings deposits FOREX deposits of which: US dollars US dollars share (%) 5.949.2 million during the period following declines for the last two years.7 92.4) (4.5 2.0 4.763.2 87.251. This is an indication that foreign currency continued to be an important source of funding 24 .7 5.4 3.1 100.4) 5.6) (20.1 3.949.1 85.9 (11.8 percent while the commercial banks’ NFA declined by 20.437.6: Monetary and Banking Summary.6) 5.250.9 298.6 254.4 3.752.0 293.3 percent in 2011.9 935.0) 5.5 874.3 (774.5 percent as non-resident deposits grew by $504 million while foreign assets fell by 1.967.5 percent in 2010 and 83.817.752.218.6 2.9 Dec-11 Change 4.9 597.2 3.8 3.307.1 219.0) (868.5) 1.477.7 (10.3 2.4 3.7 608.4 981.729.0 3.0 66.6 962.8 (20.ANNUAL ECONOMIC REPORT 2011 Table 3.7).598.7 1.6 271.5 1.7 683.1 48.306.5) 2.5 59.550.568. This represented a slight fall compared to 81.836.446.1 2.0 86.2 (10.017.5 620.5 4.1 Dec-09 5.

3 Dec-10 3.9 72.7: Net Foreign Assets.2 percent as credit to businesses contracted while household credit expanded.076. The expansion in net domestic assets was precipitated by the continued growth in domestic credit which went up by 3.6 382.2 1.677. CI$ million Dec-08 Domestic Assets Domestic Credit to Public Sector Domestic Credit to Private Sector 2.437.880.697.6 3.170.0 percent of total credit to the private sector rose by 2.056.7 3.569.7 94.598. New credit for domestic property rose by $28.140.4 (20.0 3.9 million and $79.3 2.517.8: Net Domestic Assets.4 3.1 Dec-10 3.579.ANNUAL ECONOMIC REPORT 2011 in the Cayman Islands’ “dollarized economy”. supporting the fixed exchange rate in the currency board system.1 325.2 117.580.6 2.9 3. Credit allocated to the private sector fell marginally by 0.7) (1.1 (0.5 Dec-09 3.3 percent to $3. with Banks & Branches Total Investment Total Non-Resident Loans Foreign Liabilities Total Non-Resident Deposits Other Liabilities 3.2 4.1 101.2 2.1 3.7 1.5 16.173.981.785.967. as credit for domestic property and miscellaneous purposes expanded (see Table 3.7 220.732.536.106.3 Source: Cayman Islands Monetary Authority & ESO Credit to households which constituted 63.5 Dec-09 2.1 percent as central government debt from commercial banks expanded to $293.724.5 89.1 278.8 (20.923.2 percent during the period.008.8 Dec-11 Change 2.450.6 3.5) (5.763.4 2.750. Approximately 96 percent of the new borrowing for domestic property occurred 25 .9 1.7 2.446.2 96. Table 3.836.8).3 37.447.7) 6.1 6.630.8 million in 2010 and 2009 respectively. CI$ million % Dec-08 Net Foreign Assets Monetary Authority Commercial Banks Foreign Assets Bal.352.2) Dec-11 Change 3. This was due to the growth in public sectors’ stock of debt and a simultaneous decline in private sector loans.9). insurance.3 Source: Cayman Islands Monetary Authority & ESO Net domestic assets.049.2 963.7 6.6 million in 2011 although this new lending was lower than the $82.6 million.5 7.8 2.8 2.6 and 3.1 3.427.3 1.729.7 4.8 1.8 16.4 21.953.1 100.552.477.3 % 3. Credit for miscellaneous items include consolidated debt.8 1.1 6.2 3.6 2.8 906.6 3.2 3.7 million (see Tables 3.8 238.430. medical and travel. Credit to the public sector increased by 37.0) 5. Table 3.106.

This worsening of household indebtedness resulted from increases in loans to households amidst a reduction in economic output.760 in 2010 and 22.0 percent of total credit to the private sector contracted by 4.143 in 2011.4 million and an additional $12.1 percent or $133. and other financial corporations declined by 20. 10 Total households in the Cayman Islands were 22.8 percent. 26 .783 in 2010 which increased to $77.6 percent. During the review period. up from 66. and 49. The household debt-to-GDP ratio which measures the overall level of household indebtedness as a share of GDP stood at 69. trade and commerce. Credit to the business sector which accounted for 37. Meanwhile. 15. as credit to the service sectors. The vast majority of this borrowing by the commercial construction sector occurred in the first quarter which totalled $119. US dollar-denominated loans continued to dominate total loans as foreign currency-denominated loans to total loans ratio stood at 67.1 percent in 2010.4 million in the last quarter of 2011.7 percent.ANNUAL ECONOMIC REPORT 2011 in the latter half of 2011 (these late disbursements are expected to have some spill-over economic effects for 2012).0 percent.7 percent in 2010. lending to the manufacturing sector expanded on account of higher borrowing for construction which increased by 61. this means on average each household 10 in the Cayman Islands is indebted at approximately $73.5 percent as compared to 69.505 in 2011 as household debt expanded while the number of households dwindled. Further.5 percent.4 million. respectively.

9 13.049.679.6 1.39 percent from 0.3 1.7 0.0) *Miscellaneous include consolidated debt. The weighted average loan interest rate spread over Cayman prime averaged 3.4 percentage points a year ago.2 79.7 1. medical & travel Source: Cayman Islands Monetary Authority & ESO Interest Rates.3 1.2 167. The weighted average rate on deposits increased to 0. marginally up from 3.5) 16.329.0 46.6 92. As depicted in Figure 3.5 Dec-10 2.7 143.2 1.2 177. up from 6.7 1.3 364.1 (20.5 351. insurance.2 3.0 (26.9 167.48 percent in 2011 while the prime lending rate remained constant over the review period.8 410.2 113.5) 647.3 0.4 454. the weighted average lending rate fell marginally during the year. the weighted average loan interest rate spread over the weighted average savings rate was 6.5 841.3 383.295.7.0) 40.8 1.9 218.6 70.6).5 210.1) (4.487.4 114.7 149.2 2.3) 12.716.5 169. 27 .0 130. CI$ million Dec-08 Total Credit to Businesses Production & Manufacturing of which Construction Services of which.5 187.8 44.3 9.7 607.2) (4.2 40.9 130.8 0.375.007.1 36.3 percentage points a year ago.6 (15.458. Similarly.729.6 61.ANNUAL ECONOMIC REPORT 2011 Table 3.724.6 78.4 42.7) Dec-11 Change 2.6) 2.5 519.9 1. Accommodation.1 78. Food.7 430.8 4.8 425.0 79.8 % (0. Bar & Entertainment Services Trade and Commerce Wholesale & Retail Sales Trade Real Estate Agents.3 1.2 844.468.8 (49.0 (62.626.9: Net Credit to the Private Sector.484.7 166.9 (50. Rental and Leasing Companies Other Business Activities (General Business Activity) Other Financial Corporations Credit to Households Domestic Property Motor Vehicles Education and Technology Miscellaneous* Non Profit Organizations 2.0 67.35 percent at the end of 2011 (see Figure 3.4 1.0 1.9 78.59 percent in 2010 to 6.4 percentage points.1 136.5 49.7 Dec-09 2.3 0.1 22.8 4.5 291. The weighted average rate on outstanding loans moved down by 11 basis points from 6.5 percentage points.4 116.2 2.5 118.

00 1.ANNUAL ECONOMIC REPORT 2011 Figure 3.25 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2009 2010 2011 Prime Lending Rate Weighted Average Rate on Loans Source: Cayman Islands Monetary Authority & ESO 28 .00 4.40 0.25 6.00 2.25 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2009 2010 2011 0.00 6.00 3.39 8.00 7.00 6.49 0.48 3.50 0.00 5.46 6.35 0.6: Cayman Islands’ Interest Rates (%. End of Quarter) Weighted Average Rate on Deposits 0.25 3.30 0.55 0.35 0.45 0.59 3.

and improvements in operational risk management and governance.0) (6.762 US$ Billion 1.728 1. The number of bank and trust licences continued its downward trend in 2011 as fewer registrations were recorded for all categories of licences.ANNUAL ECONOMIC REPORT 2011 4.680 127 51 76 123 54 69 136 53 83 Data available in 2011 is at September Source: Cayman Islands Monetary Authority 29 .0) (4.798 1.1 and Table 3.2) (7. 2009-2011 2010-2011 2009 Total Bank & Trust Licences Class 'A' Bank & Trust Bank Class 'B' Bank & Trust Bank External Position of Banksa Assets Liabilities Trust Companies Unrestricted Restricted a 2010 246 17 12 5 229 87 142 2011 % Change 234 15 12 3 219 83 136 (4. This resulted as banks continue to consolidate and restructure in search of cost efficiencies. The utilities sector comprising electricity and water was stable.2).607 1.2) 266 17 12 5 249 95 154 1.9 (9. 4.9) (11. the recovery is not yet broad-based as the performances of sector indicators remain mixed.734 1. When compared to last year.1: Bank & Trust Companies.6 percent in 2011 after three consecutive years of decline (see Section 3. However.1 Financial Services Overall. Table 4. The construction industry continued to suffer while real estate benefited from “buyer’s market” conditions.8) (40.1) 5. the financial services industry’s gross value added posted an estimated growth of 0. Class A licences fell by 2 to reach 15. Key Sector Developments Cayman’s financial services industry posted a mild recovery amidst a mixed performance of sector indicators while stay-over tourism grew strongly. Banks & trusts.4) (4.6) (4. while Class B licences were reduced by 10 to total 219.6) (3.

7 10.9 15.2 5.3 27.1 9.1 27. however. and the availability of discounted commercial insurance rates.4 3.0 28. On the whole.3%) to 766 in 2011.8 29.2 7. 38 new Class B licences were issued which was higher than the 25 granted in the previous year.9 10.0 100. This decline resulted as three less Class ‘A’ licences were recorded while an additional Class ‘B’ was noted. while those from Canada and Mexico. some of the reasons cited for non-renewal were low returns for various categories of investments.3 16. Similar to past years. 2009.9 7.2 23. Cayman remains 30 . During 2011.7 16. and South America increased their shares.6 3. When compared to year-end 2010.7 18. Nonetheless.0 7. Table 4.0 Source: Cayman Islands Monetary Authority Insurance. 37 licences were not renewed.8 7. United States. activity within the insurance sector moderated with the total number of registered insurance licences narrowing by 2 (or -0. and Asia and Australia.0 5. This year.8 3.9 8.2011 2008 Europe USA Caribbean & Central America Asia & Australia Canada & Mexico South America Middle East & Africa 81 76 22 28 14 47 10 278 Europe USA Caribbean & Central America Asia & Australia Canada & Mexico South America Middle East & Africa 29.7 3.ANNUAL ECONOMIC REPORT 2011 The Cayman Islands continue to be recognised as one of the top ten international financial centres in the world with over forty of the top fifty banks from fortyfive countries holding licences locally.8 100. those operating domestically are predominantly from Europe and the United States. concerns of protracted recessionary conditions.3 100.2 5.3 2009 78 74 21 27 14 42 10 2010 72 67 19 25 14 41 8 2011 66 56 19 23 18 43 9 Number of Banks 266 246 234 Percentage (%) 29.3 27. there were reductions in the shares of banks originating from Europe.1 10.2: Number of Banks by Region.8 100.

as five new SPC’s 11 were licenced. As at end 2011.8 billion in 2011. Only the assets of each segregated portfolio are available to meet liabilities to creditors in respect of that segregated portfolio.3: Captive Insurance Companies.5 billion.1 percent to total US$1.9 9.7 US$ Billions 8.0 billion in 2011.7 -23.ANNUAL ECONOMIC REPORT 2011 foremost in the captive formation industry due to its cost competitiveness and regulatory structure.0 68.1 7.2 58. expense increased while net income decreased by 23. the creditor may only have recourse to the assets attributable to that segregated portfolio. On average. Where there are liabilities arising from a matter attributable to a particular segregated portfolio.1 Source: Cayman Islands Monetary Authority The captive market stabilised as the fundamentals that make the Cayman Islands a domicile of choice still remain strong. Assets under management have increased by 18.7 11.5 35.1 6.5 0.2 44.4 14. 11 31 . Net premiums for captives grew by 35.1 percent to US$68.7 percent to US$11.0 0. Segregated portfolio company (SPC) is a type of captive which segregates the assets and liabilities of different classes of shares from each other and from the general assets of the SPC. Table 4.0 18.3 -10.8 1. 2009-2011 % 2009 Total Insurance Licences Class 'A' Licences (Domestic) Class 'B' Licences (Captives) Financial Position of Captives Premiums Net Income* Net Worth Total Assets 808 28 780 2010 768 30 738 2011 Change 766 27 739 -0.0 13. there were 124 SPCs which contained 632 active cells.3 1.

particularly risk retention groups and physician groups.5%). Healthcare 12 followed by workers’ compensation 13 continue to dominate the captive’s class of business accounting for a combined share of approximately 58 percent of total captives. comprising the 90. Although Bermuda was the more established domicile.5 percent of total companies registered with the rest originating from Caribbean and Latin America (3.4: Captive Insurance Licences by Risk Location 2008 Africa. including: • • A willingness to allow hospital.7%). Cayman offered some advantages. Cayman remains the domicile of choice for 32 . Cayman became the most common jurisdiction for healthcare providers early on following the acceptance of the Harvard captive for medical malpractice in the mid-1970s. and A more favourable reimbursement impact due to flexible capital requirements 12 Several of the newer onshore domiciles have picked up healthcare captives. However.ANNUAL ECONOMIC REPORT 2011 Table 4.sponsored physician programs. Europe (1.1%). Asia and Middle East (0. Asia & Middle East North America Pacific Rim Other 10 696 2 33 777 2008 Healthcare Workers' Compensation Property General Liability Professional Liability Other 2009 6 700 2 32 780 2009 2010 4 668 2 27 738 2010 2011 4 669 2 27 739 2011 265 161 91 71 68 83 739 Number of Companies Total Captive Companies By Primary Class of Business Number of Companies 279 269 263 163 162 160 88 115 88 74 73 72 65 65 64 108 777 96 780 91 738 Source: Cayman Islands Monetary Authority The composition of the insurance industry remained as in previous years (see Table 4. Africa.4). North America continues to dominate the risk location for Cayman’s captive market.9%) and the rest of the world (3.

258 % Change -1.4 percent of gross premium a year ago to 33. During the period.9 percent to $132.258. new registrations totalled 1034 while 939 were terminated.4 million in 2011. The largest share (71. (b) exemption under the mutual fund law.3). The 2011 unaudited consolidated financial statement indicated that gross premium was 1. 14 Ceded premiums are premiums paid or payable by the insurance company to another insurer for reinsurance protection. (c) the fund may no longer meet the definition of a mutual fund (e.7 percent.5 million.g.6 percent a year ago. as health related claims amounted to $114.8 percent and motor 6.870 435 133 9. mutual funds activity abated as it fell by 1.1 percent lower.0%) to total 27 (see Table 4.714 424 120 9. Mutual funds. 13 33 .8 percent.ANNUAL ECONOMIC REPORT 2011 Domestic insurance licences (class ‘A’) in 2011 fell by 3 (or 10.5 -9. The reasons for the termination include: (a) liquidation. The Cayman Islands Stock Exchange (CSX) stock listings rebounded to 1. settling at $356.7 percent of gross premiums. Ceded premiums 14 amounted to $120.944 448 131 9. Meanwhile. closed ended fund). a decrease from 41. Table 4.9 percent to reach 9.8 million.523 2010 8. and (d) the fund may never have carried out business. 2009-2011 2010-2011 2009 Registered Mutual Funds Administered Mutual Funds Licenced Mutual Funds Total 8. down from 42 percent a year ago while health insurance accounted for 43.5: Mutual Funds.156 as at December 2011. Net claims of domestic insurance increased by 2.2%) of ceded premiums was property which was lower than the 81. property insurance accounted for 31.438 2011 8.9 Source: Cayman Islands Monetary Authority Stock exchange. For the third consecutive year.8 -1. The increase was largely spurred by both for-profit and tax-exempt captive owners due to the experience of the professionals involved.8 -2.1 million as compared to a year ago. Workers' compensation is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue his or her employer for the tort of negligence.

This new venture serves to enhance its equity securities offerings.2 18.9 Source: Cayman Islands Stock Exchange Table 4.7 2. Moreover. listings by small Central and South American-based mineral companies. and companies offering securities to specialist investors.246 145. Previously.ANNUAL ECONOMIC REPORT 2011 the double-digit growth (i.7: Market Capitalization (US$ billions).1 81.8 -1. This resulted from the addition of 9.5%) in Eurobonds (see Table 4. resident and foreign companies increased by 1.6 0.9 percent to 92.5 0.9 0.113 2011 347 702 101 2 4 1. 36.7 2011 23.4 36. Figures for specialist debt.0 33.3 31.4 29. catering mainly to hedge funds and specialized debt issuers.8 % Change -28.3 -1.045.3 Source: Cayman Islands Stock Exchange Companies registry. Noteworthy 15 The figures for mutual funds and domestic equity refer to market capitalization.312 2010 322 712 74 2 3 1.1 0.6: Stock Listings. Table 4. mineral exploration companies.7 79. 2009-2011 15 2010-2011 Instruments Mutual Funds Specialist Debt Eurobond Secondary Equity Domestic Equity Total 2009 53.8 percent to reach US$36.8 percent were removed from companies register due to liquidation. this upturn translated to a similar rise in Eurobond market capitalization of 18.0 2010 32.9 billion. 47.8 -23.2 0. Eurobond and secondary equity is based on par values.3 3.6).e.818 143. 34 . nonresident.0 80. 2009-2011 2010-2011 Instruments Mutual Funds Specialist Debt Eurobond Secondary Equity Domestic Equity Total 2009 546 693 68 2 3 1.964 in 2011 (see Table 4. in particular.5 -1. the CSX rebranded its equity securities listing during the year to meet changing market trends.064 new companies and the removal of 7.798 companies.4 36.9 percent were voluntary dissolved and 3.9 percent were removed by the registrar while 42.8). With regard to the latter.9 0. The companies registry which comprises exempt.208 163.156 % Change 7.1 1.

064.732 8.3 -32.2 12.2 11.967 10.1 percent which summed to 1.929 9.9 2.980 156 485 443 % Change 1.202 6.651 5. 2009-2011 2009-2010 2009 Total Company Registrations Exempt Non-Resident Resident Foreign New Company Registrations Exempt Non-Resident Resident Foreign 92.064 7.157 7.2 7. whilst an exempt limited partnership is required when establishing limited partnerships for offshore investors to conduct business locally (as is solely necessary for offshore business operations). Domestic enterprise or inward investment interest in the form of registered partnership companies strengthened during the period.4 -6.8). For 2011.206 72.104 230 432 391 2011 92. This is traced to increased registration of exempt.1 12.ANNUAL ECONOMIC REPORT 2011 is that only 1. resident and foreign companies while non-resident company registration was lower (see Table 4. New partnerships rose by 354 (or 22.8: Company Registrations.764 220 487 392 2010 91.627 7. A limited partnership allows for business transactions to be conducted by two or more persons or entities.9 percent) to amass 1.1 percent to reach 9.964 74.193 2.782 9.060 6.3 Source: Cayman Islands General Registry Company partnership registry.867 73.071 2.897 while no new limited partnership licences were issued.142 over the last two years. respectively. The exempt category which grew by 2. Table 4.1 6.863 6.994 9. New company registrations increased by 11. 35 .4 percent remains the largest proportion of total companies accounting for 80. both foreign and resident companies increased by 7.3 13.2 percent and 6.4 percent.829 2.2 percent. while non-resident companies continued to dwindle by 6.1 percent or 82 companies de-registered and moved to other jurisdictions.

500.500. This overall figure was owing to a 12.6 1.000 500 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 632 531 335 565 1.9 1.3 percent in 2011 to reach 1.0 1.886.855.500 1.188 1.500 2. 2008-2011 2.0 500.6 thousand at year-end.2 Tourism Total visitor arrivals to the Cayman Islands fell by 9.710. visitor arrivals grew by over 4 percent worldwide during the same period to total at 980 million.0%) than in emerging ones (3.1: New Partnerships Registered 2.0 2.543 Source: Cayman Islands General Registry 4.3 1.2 percent expansion in stayover arrivals.000. WTO noted that this “growth was higher in advanced economies (5.000.ANNUAL ECONOMIC REPORT 2011 Figure 4.535 1.149 928 429 2.710.3 percent decrease in cruise arrivals which outweighed the 7.897 1.2: Tourist Arrivals.1 Thousands 1.8%) due largely to the 36 .0 2008 2009 2010 2011 Source: Department of Tourism Meanwhile. Figure 4. as reported by the World Tourism Organization (WTO).0 1.000 1.792. In contrast to previous years.180 2.

Puerto Rico and the US Virgin Islands.8 million visitors was noted in 2011. Similarly. 7. This outcome was associated with strong results in larger destinations such as Cuba.091 persons visited. growing by 3.3 percent over a year ago.0 - 2008 2009 2010 2011 Source: Department of Tourism 16 www. Based on results from the Caribbean Tourism Organization (CTO). Stay-over market.2 percent higher than in 2011. international travel from the European region has been fuelled by “business travel on long-haul markets”. On a broader outlook.3 309. the Caribbean tourism industry also performed better in 2011.9 272. an estimated 23.0 100. Increased demand for travel by European markets was reflected domestically.org.1 200. Despite the fragile recovery of some markets.0 Thousands 302.ANNUAL ECONOMIC REPORT 2011 strong results in Europe and the setbacks in the Middle East and North America 16”. 2008-2011 400. the recently introduced Kittiwake shipwreck attraction served to stimulate the diving industry and improve stay-over numbers. as this region represented the second strongest growth. Stay-over arrivals in the Cayman Islands grew for the second consecutive year as a total of 309. Increased visitor activity was directly related to new promotional strategies undertaken by the Department of Tourism such as ‘Caymankind’.0 288. World Tourism Organization 37 . Figure 4.3: Air Arrivals.unwto.0 300. The recently introduced (three-year) direct service to Toronto by West Jet airline contributed largely to this boost in arrivals as the Canadian region showed the highest growth in arrivals. as revealed by the International Air Transport Association (IATA). the Dominican Republic.

Overall cruise arrivals in the region were seemingly affected by the redeployment of 38 .9 45.1 19.4 2009 215.4 1.8 1.2 5.7 52.563 to 4.1 24.302. 2008-2011 Absolute 2008 USA Northeast Midwest Southeast Southwest West Coast Europe Canada Others Total % Share of USA 240.4 3.9: Stay-over Arrivals by Country of Origin.6 20. all other markets followed closely behind while the Midwest region showed the lowest growth of 2.9 79.4 79.3 37. the total number of licensed tourist accommodation properties decreased from 300 to 280 this year.401.6 50.0 36.0 26.5 288. Further review shows that the USA—the largest contributor of arrivals to the Cayman Islands—accounted for 78.3 percent reported last year.1 51.0 75. This performance is in line with the marginal 0.2 Source: Cayman Islands Department of Tourism At year-end. as reported by the Department of Tourism (DOT). See Table 4. arrivals from all regions within the USA (the largest market for stay-over arrivals in the Cayman Islands) improved.8 21.6 3.6 Change 14.1 2010 228. The West Coast dominated this outcome as it registered a double-digit growth of 11.9 Table 4.3 6. Statistics on occupancy and accommodation levels were unavailable at the time of the publication of this report.3 percent.5 22.5 83.2 42.1 (0.3 18.3 2.9 11. Canada comprised 8.1 78.0 19.2 2011 242.4 309.6 million by December 2011.0 percent of overall visitors and grew by 26.9 85.5) 7. Similarly.1 17. Similarly.ANNUAL ECONOMIC REPORT 2011 When compared to 2010.3 percent.5 percent. This figure was lower than the share of 79.9 8.0 79.3 20. the local room inventory for visitors declined by 261 as the total number of bedrooms in operation.5 82.6 302. Cruise arrivals declined by 12.6 21.1) 20.3 percent growth noted in regional cruise arrivals which tallied 20.9 3.5 20.3 6.1 43.4). Meanwhile.1 16.495 (see Figure 4. fell from 4.6 272.1 38.8 49.3 percent to 1.6 45.7 1.7 % Change 6. Cruise Market.6 percent of the total market.3 15. while Europe accounted for 6.9 18.3 percent.8 percent and improved by 6.2 (0.7 42.6 9.0 15.9 19.

3 Construction Construction indicators continued to slide resulting in the industry’s estimated gross value added dipping by 1.0 Thousands 1.520.450.4: Cruise Arrivals.550. Building Permits. albeit the decline is sharply lower than the 42.500.1 1.0 percent to $183. 4.0 1. Other downside pressure that could have impacted the industry is the demand for home-port travel to densely populated catchment areas in destinations such as the Mediterranean and other large European countries. Similarly. The total value of building permits and project approvals fell to their lowest levels in seven years.2). respectively to $183. the number of certificates of occupancy fell for the second consecutive year.8 1.5 2008 2009 2010 2011 Source: Department of Tourism Cruise passengers per day averaged 3.1 million. Construction activity continued its downward trend falling by 11.8 million.893 persons which was 545 visitors less than the average a year ago.0 1.1 percent recorded a year earlier. the number of local cruise ship calls declined by 8. 2008-2011 1.553. Figure 4.0 1.1 million and $251. 39 .401. building activity showed some signs of stabilising in the second half of the year with two consecutive quarters of growth following nine consecutive quarters of contraction. declining by 36.600.2 percent recovery recorded for 2010. Meanwhile.0 1. Nevertheless.597.350.3 percent in 2011 (See Table 3.0 1.0 1.2 percent to 523 at year-end.400.300.ANNUAL ECONOMIC REPORT 2011 several cruise vessels to non-Caribbean routes.2 percent to 391.650.0 1.4 1. This contraction reversed the 4.

9 37.7) (85.9 10. industrial and government construction) edged downwards by 7.2) (16. particularly in the apartment/condominium category. 2008-2011 2008 Houses Apartments Commercial Industrial Hotel Government Other Total 116.ANNUAL ECONOMIC REPORT 2011 Table 4.1 92.6) 244.2 0.4 million).8) (32. Table 4.5) (6.2 62.081 2009 532 171 116 7 0 16 303 1.0 28.10: Grand Cayman Building Permits.9 percent to 823.6 3.9 183.7 13.5 percent decline in house building.1 (5.5 (13.4 39.8%) and industrial (-84.6 0.1 percent to $125. permit values fell for a second year this time by 12.9 million.3 2.5 6.6 116.0 35.6 Source: Cayman Islands Planning Department In the residential sector.7 502.4 93.1 percent to $46.4 49.8) (84. Building permit numbers when compared to a year ago fell by 16.3 2009 2010 2011 % Change 87.5 0.9) Source: Cayman Islands Planning Department 40 .4) (11. Non–residential activity (which consists of commercial.6%) countered the increase in government project values (244. apartment/condominium building activity fell to its lowest level in ten years ($37.5%).6 355.3 million. In addition to the 5. as measured by building permit numbers. Activity levels.3) (12.6 162.8 29.0) Millions of CI$ 146.145 2010 390 114 120 7 0 12 347 990 2011 % Change 348 77 112 1 0 15 270 823 (10.11: Grand Cayman Building Permits.5) (24. remains hampered by declining population and slow employment growth.0 205.0 (22. similarly echoed the decline across all but the government category.7) 0 25. 2008-2011 2008 Houses Apartments Commercial Industrial Hotel Government Other Total 503 182 176 14 1 36 169 1.7 49.0 12. Recovery in residential activity.8 2.5 45. The declines in commercial (-12.

Higher approvals for houses (24.1 93.9 123.7%) categories.3 18.1 149. Table 4.7 25.9 170.5 %).7 15.1) (72.4 18. Construction intentions.7 6.6 1.2 percent increase to $151.1 percent contraction in the apartment/condominium category.041 with broad declines recorded for all but the house (3.4 percent decline in 2010.9 36.1 12.8 2009 2010 2011 % Change 24.2 100.6 11.12: Cayman Islands Planning Approvals.4 %) and the ‘other’ category (-52.5 41.9 508. The commercial category plunged to its lowest level of $25.2 330.7 99.2 2.4) 19.3 27.5 251.9 million with only one new office building planned in 2011 compared to four buildings in 2010. 41 .8 Source: Cayman Islands Planning Department Projects in the non-residential sector receded from $107.8 million in 2010 to $59.2 1.278. The decline is traced to the sharp fall in commercial category (-72.5) (23.3 percent to 1.8) Millions of CI$ 127. The total number of approvals fell by 3.8 86. Mitigating the decline in the commercial category were increases in the government and industrial categories with the latter climbing to $18.9 126.2 77.0%) offset a 24.4 million following a 31.ANNUAL ECONOMIC REPORT 2011 Project Approvals.0 (24.5 30.8 percent to $251.1 434.7%) and industrial (66.8 (52.2 million as a result of a planned $12. as measured by the value of project approvals contracted by 23. Residential approvals recorded an 11. 2008-2011 2008 Houses Apartments Hotels Commercial Government Industrial Other Total 118.5 million distribution centre.3 million.9 2.8 million.

2) (52. declined in number from the 400 issued last year to 256.2) (50.1 and 50. the overall number of non-residential certificates declined as the commercial and government decreased by 16.076 2011 % Change 367 52 0 38 16 10 558 1.7 (56.14: Certificates of Occupancy Grand Cayman.1) 66. 2008-2011 2008 Houses Apartments Hotel Government Commercial Industrial Other Total 283 120 0 3 108 4 16 534 2009 305 98 1 2 100 5 29 540 2010 308 92 0 10 93 3 107 613 2011 % Change 212 44 0 5 78 5 47 391 (31.277 2009 460 111 0 48 6 12 588 1. This significant offset the declines across remaining categories.7) (20.5 percent to $150. the number of certificates of occupancy fell by 36.8) (5.0) (16.1) (36.1) (3.3) Source: Cayman Islands Planning Department Certificates of Occupancy.ANNUAL ECONOMIC REPORT 2011 Table 4. However. Table 4. rose by 3.0 percent respectively. 2008-2011 2008 Houses Apartments Hotels Commercial Government Industrial Other Total 464 108 2 48 10 12 633 1.225 2010 354 75 0 48 17 6 576 1.2 percent in 2011.7 (30. accounting for majority of projects.9) 66. The residential segment. when compared to a year ago.041 3.2) Source: Cayman Islands Planning Department 42 . the industrial category rose by two in the review period.13: Cayman Islands Planning Approvals.6 million Government Office Accommodation Building. Similarly. The monetary value of properties granted completion approval. During the review period.5 million in 2011 as a result of completion of the $50.7 (3.

8) (55.5 Source: Cayman Islands Planning Department 4.5 1.9 percent decline a year ago.0 1.6 26.0 Commercial 60.4 Real Estate The real estate sector experienced a strong resurgence in 2011.3) 3.4 150.4 (25.2 178 25.0 1.1 Change 5.2) (87.7) 3. after three continuing years of decline.15: Certificates of Occupancy Grand Cayman.045 397.0 2010 1.9 Other 8.287 416.5 168 9.8 100.6 0.2 Industrial 2.9 Source: Lands and Survey Department Amongst freehold property (the principal type of traded property).5 105.6 24.708 632.5) (33.2 0. both volume and value recovered after two years of decline.6 50.886 following a 21. though it remains lower than the 2006-2008 levels (See Table 4. 2008-2011 2010-2011% 2008 Freehold number value (CI$M) Leasehold number value (CI$M) Total number value (CI$M) 2.4 19.2 5.4 1.4 Total 222.5 Millions of CI$ Houses 63.16: Property Transfers.4 2.2 2011 1.289 558.2 242 19.3 279.5 107.0 57.ANNUAL ECONOMIC REPORT 2011 Table 4.7 20.6 67.1 Apartments 87.3 2.9 5.8 6.1 43.4 145.619 307. 2008-2011 Sectors 2008 2009 77.787 316.1 3.078.8 323 76. The volume of traded property rose by 5.5 percent to 1.5 3. This was boosted by sales of 43 .0 180.4 73.1 2009 2.16).886 657.612 634.6 2010 2011 % Change (14. Table 4.0 Hotel Government 1.

5 Utilities and Telecommunications Utilities. commercial consumption rose by 1.6 million) and properties comprising Stan Thomas Holdings (US$124.704. overall demand remained relatively constant at 554.4 percent. the fall in residential consumption was primarily influenced by higher fuel costs which prompted greater energy conservation by households despite warmer weather impacting the last quarter of the year compared to 2010.4 percent increase over the $9.0 -1.8 262.8 559. However. As reported by the Caribbean Utilities Company (CUC). 4. Traded leasehold property amounted to $25.0 6.1 percent.1 Source: Cayman Islands Water Authority.697.8 263. 2009-2011 2009 Millions of US Gallons Water Production Water Consumption '000 of megawatt hrs Electricity Production Electricity Consumption Residential Commercial Public 1.4 percent and 1. representing a 180. Although.1 290.1 1.9 1.2 0.5 megawatt hours (mWh) as at year-end 2011 (see Table 4.6 1.17). This rebound is indicative of the strengthening economy as businesses increased their take-up of office/retail space.4 percent during the period.0 6. both residential and public usage fell by 1.3 percent between 2010 and 2011.4 608.5 % 2011 Change 1.8 million.0 million).970.5 285.7 6.0 258.5 554.1 553. Caribbean Utilities Company 44 .741.977. Demand for electricity and water were seemingly impacted by the decline in the number of households in 2011.8 2010 1.2 percent to 606.4 -1.8 289.2 0.4 1. Similarly. respectively. Cayman Water Company.17: Utilities Production/Consumption. Table 4. while local water production increased by 0.0 605. Local electricity production rose marginally by 0.ANNUAL ECONOMIC REPORT 2011 multi-million dollar properties such as the Watercolours Development ($33.8 0. demand was lower as total usage fell by 0.2 million recorded last year.959.3 -0.2 606.0 mWh.

864 2011 132. LIME announced its improved 4G network in all three islands. Additionally. This enhanced coverage – especially for the Sister Islands—enables advanced data capacity and Internet capability. With its announced majority share in Caribbean systems integrator Netxar Technologies in February.049 263.6) (12. During the year. as well as reliable video conferencing from mobile devices. In seeking to boost their market share and product offerings both local telecommunication companies.2) Source: Information Communication and Technology Authority (ICTA) 45 .001.001 231.309 % (3.18: Telecommunication Sector Indicators. Digicel aimed to deliver advanced ICT systems and processes to a broader range of its corporate customers. Meanwhile.2 percent to 411. during the latter part of the year.5) Change Broadband connections 18. the total number of telephone lines (fixed lines and mobile) fell by 3. Table 4.349 411.ANNUAL ECONOMIC REPORT 2011 Telecommunications. Cable and Wireless Communications Plc.852 18.242 468. LIME increased the number of its regional businesses to 14 with the acquisition of the Bahamas Telecommunications Company by LIME’s parent company.185 204.816 (0.692 179. Digicel and LIME.6 percent resulting in the number of paid telecommunication minutes declining by 12. initiated strategic measures over the period.0) (12. 2009-2011 2010 Fixed and mobile handsets in operation Total fixed & mobile domestic & int'l minutes ('000) Fixed and mobile domestic minutes ('000) Fixed and mobile int'l retail minutes ('000) 137.2) (12.

0) (200.0) (250.1).3 million in 2011 as compared to $88.9 million a year ago. while total expenditure followed with a 3.7 (3. Total revenue rose by 5.9 0. 17 46 .0 0. there were other expenses (extraordinary expenses and other executive expenses) which were also added to current expenditure.1 million (see Table 5.1: Central Government’s Fiscal Balance 50.9) (149.8 million.7 percent increase to reach $626.9) (61. Fiscal Operations of the Central Government The central government’s overall fiscal position showed improvements in 2011 as revenue collection recovered while expenditure continued on the uptrend.3) 2011 Current Balance Source: Cayman Islands Treasury Department and ESO Current surplus (deficit) is total current revenue (coercive revenue plus non-coercive revenue) less current expenditure.1 Overview In 2011.0 (50.ANNUAL ECONOMIC REPORT 2011 5. Figure 5. central government’s overall deficit narrowed as growth in total revenue outweighed the growth total expenditure.0) (88. The overall deficit settled at $80. 5. However.5) (80.9) (203.0) 18.5 million in 2010 (see Figure 5.6) 2008 2009 2010 Overall Balance CI$ M (100.9 percent to $545. overall balance remained in deficit requiring additional net borrowing which increased the central government’s debt.0) (150. In some years.9 million as compared to a current deficit of $3. The improvement in recurrent revenue combined with marginal increase in recurrent expenditure yielded a current surplus 17 of $18.1).

ANNUAL ECONOMIC REPORT 2011
Revenue increases in 2011 emanated from a combination of revenue measures primarily taxes on international trade and transactions, domestic taxes on goods and services, and taxes on property. Table 5.1: Summary of Fiscal Operations, 2008-2011
2008 Total Revenue Total Expenditure Current Expenditure of which : Extraordinary Expenses Other Executive Expenses Capital Expenditure & Net Lending Current Balance Overall Balance Financing Net Borrowing Change in Cash (minus=increase) 522.2 672.1 521.5 1.7 12.3 150.6 0.7 (149.9) 149.9 145.4 4.5 2009 473.7 677.3 535.6 20.1 3.7 141.7 (61.9) (203.6) 203.6 158.4 45.3 2010 515.4 603.9 519.3 2.1 2.5 84.6 (3.9) (88.5) 88.5 80.7 7.8 2011 545.8 626.1 526.9 0.0 3.0 99.2 18.9 (80.3) 80.3 21.0 59.3 Millions of Cayman Islands Dollars 5.9 3.7 1.5 (100.0) 20.0 17.3 (584.6) (9.3) (9.3) (74.0) 659.6 % Change 2010/11

Source: Cayman Islands Treasury Department

On the expenditure side, total expenditure increased from higher capital expenditure and net lending, and recurrent expenditure. The former was precipitated by strong increase in capital acquisition while the latter was propelled by increases in cost of supplies and consumables, and subsidies to parastatals. 5.2 Revenue Revenue grew by 5.9 percent to reach $545.8 million, raising the revenue-to-GDP ratio to 22.1 percent compared to 21.4 percent a year ago. Total revenue comprises both coercive (89.7%) and non-coercive revenue (10.3%). As displayed in Table 5.2, coercive revenue which totalled $489.3 million rose by $30.8 million, or 6.7 percent compared to the preceding year (see Table 5.2). On the other hand, non-coercive revenue fell by 0.7 percent to total $56.5 million, compared to the previous year.

47

ANNUAL ECONOMIC REPORT 2011
Table 5.2: Revenue Collection of Central Government
Revenue Sources Total Revenue Coercive Revenue Taxes on Int'l Trade & Transactions Domestic Taxes on Goods & Services Taxes on Property Fines Other Taxes Non-coercive Revenue Sale of Goods & Services Investment Revenue Other Operating Revenue 2008 522.2 457.9 176.9 238.0 41.1 1.9 64.3 59.7 4.2 0.4 2009 473.7 430.9 152.0 248.2 23.9 2.4 4.5 42.8 41.8 0.3 0.7 2010 515.4 458.5 158.5 277.1 21.3 1.6 0.0 56.9 56.2 0.1 0.6 2011 545.8 489.3 162.2 289.5 36.4 1.2 0.0 56.5 55.8 0.6 0.1 Millions of Cayman Islands Dollars 5.9 6.7 2.3 4.5 70.9 (25.0) (0.7) (0.7) 338.0 (82.6)

% Change 2010/11

Source: Cayman Islands Treasury Department

Coercive revenue from international trade and transactions. Over the past few years the receipts from international trade and transactions declined as a share of coercive revenue. This ratio moved from 38.6 percent in 2008 to 33.2 percent in 2011 notwithstanding the increase in average duty from 20 percent to 22 percent in 2010. In addition, a higher reliance is being placed on revenue generated from domestic transactions with rate hikes over the last three years. In 2011, taxes on international trade and transactions rose by 2.3 percent to reach $162.2 million (see Table 5.2). Table 5.3: Revenue from Import Duties
2008 Import Duties Gasoline/Diesel Alcoholic Beverages Motor Vehicles Tobacco Products Other Import Duties Cruise Ship Departure Charges Environmental Protection Fund Fees Taxes on International Trade 162.9 22.4 15.8 13.6 3.2 107.8 9.3 4.7 176.9 2009 138.6 26.5 14.9 8.2 3.1 85.9 9.0 4.5 152.0 2010 143.9 29.0 16.8 8.3 4.7 85.1 9.6 5.0 158.5 Absolute % Change 2011 Change 2010/11 5.2 6.5 (0.2) 0.4 (1.5) (1.2) (0.3) 3.7 3.6 22.4 (1.2) 4.8 0.0 (1.8) (12.5) (6.0) 2.3

Millions of Cayman Islands Dollars 149.1 35.5 16.6 8.7 4.7 83.6 8.4 4.7 162.2

Source: Cayman Islands Treasury Department

48

ANNUAL ECONOMIC REPORT 2011
The increase in revenue from international trade and transactions is traced mainly to higher receipts from gasoline and diesel imports by $6.5 million (or 22.4 percent). This higher revenue resulted from the total quantity of imported fuel which increased by 4.5 percent, and the increase in the rate of fuel duty by 25 cents per imperial gallon starting June 2010. With the exception of receipts from motor vehicles, all other revenue sources under this rubric declined (see Table 5.3). Revenue collected from cruise ship departure charges fell by 12.5 percent, on account of a 12.3 percent decrease in cruise ship visitors during the year. Other import duties declined by 1.8 percent although the volume of non-fuel imported goods grew by 3.1 percent. Coercive revenue from domestic taxes on goods and services. Revenue from domestic taxes yielded $289.5 million in 2011, which was $12.4 million higher than the collection a year ago (see Table 5.2). The increase was mainly from financial services fees/licences, work permits and residency related fees, and traders’ licences. Growth in fees from financial services arose from company fees, partnership fees and security investment business licences. Company fees increased by 4.7 percent to $66.0 million, aided by the recovery in the number of new companies registered. New partnership fees increased by 16.7 percent to total $9.8 million on account of higher new partnership registrations, while the increase revenue from security investment business licences was $2.2 million (see Section 4.1). Work permits fees and related residency fees increased by 3.2 percent to total $58.5 million despite a 2.9 percent reduction in work permits. This increase emanated from enhanced enforcement effort to collect revenue from previously delinquent sources, which included outstanding fees associated with permanent residence. Similarly, collection from traders’ licences increased by $2.3 million arising from increased enforcement. Other domestic taxes comprising a host of low yielding fees increased by 6.6 percent (or $3.8 million) to total $61.6 million. This category was led by tax and trust undertakings and tourist accommodation charges with total fees increasing by $2.1 million and $1.3 million, respectively.

49

ANNUAL ECONOMIC REPORT 2011
Collections from other stamp duties and ICTA licence and royalties dropped by $1.0 million, respectively. Table 5.4: Domestic Taxes on Goods and Services
2008 Domestic Taxes Various financial service licenses ICTA licences & royalties Work permit fees and residency fees Other stamp duties Traders' licenses Other domestic taxes Domestic Taxes on Good & Services 2009 2010 % Change 2011 2010/11

Millions of Cayman Islands Dollars 122.4 8.7 48.0 12.6 6.2 40.1 238.0 127.6 8.4 43.1 9.7 6.5 53.1 248.2 143.0 7.9 56.7 8.1 3.6 57.8 277.1 149.5 6.9 58.5 7.1 5.9 61.6 289.5 4.5 (12.7) 3.2 (12.3) 63.9 6.6 4.5

Source: Cayman Islands Treasury Department

Other coercive revenue. In 2011, revenue from taxes on property benefitted from a major transfer of properties in the Seven Mile road. The increase amounted to $15.1 million (70.9%) while revenue from fines declined during the period (see Table 5.2). Non-coercive revenue. Revenue from this source turned in a total of $56.5 million which was 0.7 percent lower than the collection a year ago (see Table 5.2). Sales of goods and services generated $55.8 million during the year. 5.3 Expenditure

Total expenditure amounted to $626.1 million, 3.7 percent above the previous year’s level (see Table 5.1). As a proportion to GDP, total expenditure increased from 25.1 percent in 2010 to 25.4 percent in 2011. The expansion in expenditure was due to a 17.3 percent increase in capital expenditure and net lending, coupled with a 1.5 percent increase in recurrent expenditure. Current expenditure. In 2011, total current expenditure increased by 1.5 percent to $526.9 million due mainly to increases in supplies and consumables, subsidies and interest payments. Funds spent on supplies and consumables increased by 7.9 percent to total $94.0 million during the period. Subsidies increased by 5.1 percent to $131.6 million, of which 80 percent are subventions to public entities. 50

1 2.1 3.9 216.2 97.2 million (or 4.9 5.3 94. Other executive expenses comprise expenditure mainly for social intervention projects and other government measures which are not categorised as transfer payments or subsidies to public authorities. This included an increase in equity investment of 91.6 236.7%) to total 3.4 20. This is coupled with a 3.6 19.5 2011 526.0 million during the year (see Table 5. The former captures expenditure that is of a temporary nature which was unbudgeted for the year.0 % Change 2010/11 Source: Cayman Islands Treasury Department Extraordinary expenses and other executive expenses.3 224.0% of GDP) during the period (see Table 5.9 2.1 32. In 2011.7 1.0 percent to total $3.8 87.9 percent to $32. Outlays for those items plummeted as little or no unplanned events (such as natural disasters) occurred.7 12.5 27.8 11.9 0.0) 20. this increased by 20.6) which was 17.2 million of which 51 .2 29.5 28. Interest payments went up by 17.5 (3.8 percent to $216.6 84.4 (9.9 million in the wake of additional interest payments for servicing an additional debt of $21.0 million (see Table 5.0 million.7 2010 519.5).8 105.2 percent salary-cut of civil servants in July of 2010 which reduced personnel cost in the first half of 2011 until it was reinstated in December 2011.3 percent higher than the preceding year.0 Millions of Cayman Islands Dollars 1.0 131.4 18.0 27.5 122.9 (100.3 million (see Table 5.7 20.593 in 2011.6 percent to reach $82.0 3.8) 7.1 125.1 4.ANNUAL ECONOMIC REPORT 2011 Transfer payments which are social benefits to protect a target segment of the population against certain social risk increased by 4. Personnel costs fell by 3.4 percent to settle at $31.5: Current Expenditure of the Central Government 2008 Current Expenditure Personnel Costs Supplies & Consumables Subsidies Transfer Payments Depreciation Interest Payments Extraordinary Expenses Other Executive Expenses 521.5 245.5) due to reduction in the number of civil servants by 25 persons (or 0.3 2009 535. Total spending on capital expenditure and net lending reached $99. Capital expenditure and net lending.2 21.6 31.5) 17.7).0 18. Table 5.

2 2011 99.6 -57.0 Millions of Cayman Islands Dollars 17.0) (200.3% of GDP) compared to $88. the overall deficit narrowed to $80. Figure 5.4 million or 1.2 % Change 2010/11 Source: Cayman Islands Treasury Department 5.3 million (3.5 4.5 million (3.3 percent to $16.0 2009 141. Spending for executive assets declined by 57.1 2010 84.7) (47.9 percent of GDP in 2011.3 -76.0 1.2) 2008 (184.6 40. Expenditure on executive assets was slashed to minimize additions to the public debt while adhering to the fiscal prudential limits set out in the Public Management and Finance Law (PMFL).0 (40.9 0.7 109.5 percent of GDP in 2010 to a deficit of $47.0) (29.0) (120. Similarly.2 1.0 million.0) 2007 (138.4) CI$m (80.6: Capital Expenditure and Net Lending of Central Government 2008 Capital Expenditure and Net Lending Capital Acquisition (now Equity Investments Capital Development (now Executive Assets) Net Lending 150. the primary balance improved from a deficit of $60.9 37.6 42.2 82.0) (160.4 35.3 91.7 million or 2.7 105.7% of GDP) in 2010 (see Figure 5.1).4) (60.ANNUAL ECONOMIC REPORT 2011 the vast majority was spent on the construction of two new high schools and expansion of existing schools.2 16.4 Primary Balance The primary balance is the overall fiscal balance excluding interest payments and is a standard indicator of the central government’s capacity to service debt obligations. During the period.2) 2009 2010 2011 Primary Balance Source: Cayman Islands Treasury Department and ESO 52 . Table 5.2: Primary Fiscal Balance 0.

6 (132. ESO Central government’s outstanding debt comprises debt managed directly by the Treasury Department and excludes government-guaranteed debt and other contingent liabilities.5 Net Financing and Debt Service Indicators The overall deficit of $80. 18 This placed the debtto-GDP ratio at 24. as a large proportion was used as bridge/short-term financing.9) 45.6) 59.8 74.0 15.3 Millions of Cayman Islands Dollars (9.3 (25.6 61.0 200. Debt-to-GDP Ratios & Debt Composition 700. Figure 5.5 24.3) from $592.0 2007 2008 8.6 percent as at December 2010.2 (20.3 million from cash reserves (see Table 5.0 52.7 million as at end 2010.0 513.3 % Change 2010/11 Source: Cayman Islands Treasury Department The expansion in net borrowings during the year resulted in an increase in the central government’s outstanding debt to total $613.4 184.4 10.9) 7.4 166.5 592. In 2011.8 2011 80.3 million was financed by borrowing and a simultaneous drawdown of $59.0 million after accounting for the loan repayments of $132.0 500.4 percent from domestic sources.6 million.0 400.0) 44.0 47.0 210. Net borrowing totalled $21.7: Financing of Central Government 2008 Financing Net Borrowing Disbursements Loan Repayment Change in Cash (minus = increase) 149. higher than the 24. Table 5.7).0 20.4 39.0 0.2 33.0 25.0 660.5 80.3: Central Government’s Outstanding Debt.9 30.6 24.0 2009 2010 2011 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 51.4 million as at end December 2011 (see Figure 5.0 Total Disbursed Outstanding Debt ($mil) Debt to GDP ratio (%) 600.0 300.2 25.0 0.7 (25.8 2007 2008 66.7 613.9 percent.5 2009 203.ANNUAL ECONOMIC REPORT 2011 5.0 412.6 Central Gov't Debt ($mil) Debt-to-GDP ratio (%) 2009 2010 2011 Domestic Stock External Stock Source: Cayman Islands Treasury Department.4 48.6 percent from external sources and 47.3 20.6 158.9 13. 18 53 .0 153.0 100.0 5.3) (74.9 145.7 106.7) 4.5 354. the outstanding debt comprised 52.3 2010 88.3 21.

Current Revenue Ratio Debt Service . which was borrowed and repaid during the course of the year. from 10.8 2.7 30.2 6.0 6. This hike was due to a bridge or short-term loan facility amounting to $107.4 1.4 2011 6.7 percent as short-term debt were amortised during the period.8: Central Government Debt Service Indicators 2008 2.to .Current Revenue Ratio Source: Cayman Islands Treasury Department.2 9.1 5.1 million.6 10. the debt service to GDP ratio stood at 6.to .2 2009 2010 Percentage (%) 4.2 1.ANNUAL ECONOMIC REPORT 2011 The central government’s debt service-to-current revenue ratio worsened in 2011 to 30. Similarly.4 percent a year ago. Additionally. Economics and Statistics Office 54 .3 Interest Payments .4 percent a year ago (see Table 5. interest paymentsto-current revenue ratio stood at 6.8).to .3 percent.GDP Ratio Debt Service . Debt Service Indicators Table 5.0 percent compared to 5.

and Canada forecasted to grow by 2. the Euro area is expected to contract by 0.1 percent. GDP is projected to expand by 1. respectively.5 percent in 2012 from the 3.2 percent.8 percent. these weaknesses are expected to ameliorate in 2013. Macroeconomic Outlook for 2012 The Cayman Islands’ economy is projected to improve in 2012. the UK and Germany are foreseen to improve by 0. On the other hand.1 Global Outlook 19 Global economic output growth is forecast to slow to about 3. fiscal consolidation. Average GDP growth among the advanced economies is expected at 1. 6. The inflation rates for the US and the advanced economies are forecasted at 2.9 percent respectively. However. however. Domestic inflation is projected to be higher due to higher global oil prices. Domestic demand is also expected to pick-up with higher private construction as early indicators seem to suggest several projects are at This global outlook is based on information culled from the International Monetary Fund (April 2012) and other international organizations.6 percent.ANNUAL ECONOMIC REPORT 2011 6. The downside risks primarily include weak confidence. Similarly. This is hinged on the moderate recovery of consumption spending among advance economies in the midst of deleveraging by both households and governments. Overall.S.9 percent in 2011. with the U. as financial services activities is expected to post a stronger recovery coupled with another year of growth in the stay-over tourism sector. 19 55 . In 2012.4 percent.8 percent and 0.3 percent. inflation among advanced economies is projected to increase as oil prices are expected to be higher in the wake of geopolitical tensions. inflation in emerging and developing economies is projected at 6. Non-fuel commodity prices are anticipated to remain high albeit marginally lower than the previous year. and prevailing tight financial conditions in a number of economies particularly in the Euro area. conditional on continued growth in major source markets for tourism and financial services. 6.2 Domestic Growth The Cayman Islands economy is expected to sustain growth in 2012.1 percent and 1.

Real estate. Table 6. and Economics and Statistics Office for Cayman data.1: Macroeconomic Indicators 2008-2013 Projected 2008 Real GDP growth (%) Cayman Islands United States World Consumer Prices Inflation (CPI) (%) Cayman Islands United States Advanced economies Unemployment Rate (%) Cayman Islands United States Advanced economies 2009 2010 2011 2012 2013 (0. real estate and renting are also expected to grow from support services for private construction projected to begin implementation in 2012. more specifically in the Euro area. public investment is expected to decline further in 2012.1 4.7 7.1 1.5) (0. inevitably.7 2. While stricter measures within these jurisdictions to re-structure their debt and stimulate stagnating economies remain the likely scenario.S.8 (6.7 4.6) (3.0 7.1 8.0 5.9 1. World and Advanced Economies.8 6.3) 0.8 2. Despite recently improved results in the U.6 1.1 1.0 1. Overall.2 7. 56 .5 1.3 6.4 (1. the latent risk which exists in the global financial services industry. however.9) (2.1 2.7 2.9 6. Despite.1 3. economic conditions within key external markets remain tenuous in the short and medium term. Financial service sectors are expected to improve with firmer recovery in some sectors while others are likely to stage soft upturns. recovery may be adversely impacted. renting and business activities are expected to benefit from increased activities in company registration and financial services in general.0 9. economy (as per renewed consumer spending and GDP growth) downside risks persist with the continued Euro-zone sovereign debt challenges.0 6. the Cayman Islands could possibly benefit from outflows of capital flight to safety.8 3.0 5. to U.4) (0. In addition.3 3.3 1.9 7.4) 0.1 3.5 2.2 9.6 8.3 8.3 9.ANNUAL ECONOMIC REPORT 2011 implementation stage.1 0.4 2.9 2.8 Sources: International Monetary Fund (April 2012) for data on the US.9 1.4) 3.9 5.1 2.7 3.4 4.8 5.3 1.S.

5 percent respectively. Emerging economies will lead with stronger growth in Asia.9 percent.7 percent for the year 2012. the Pacific and Africa (4% to 6%). Imported inflation could be lower if geopolitical tensions recede.3 Domestic Inflation The consumer price index (CPI) is forecasted at 2. as international food and energy prices are expected to dominate overall movement in prices locally.1 percent in 2012. reaching the historic one billion mark by year end. Local demand is not expected to have any significant impact on prices due to low economic activity. UNWTO forecasts continued growth in international tourism in 2012 although at a slower rate. Stay-over arrivals is projected to grow overall by 2. while mutual funds for the first quarter of 2012 rebounded by 7.4 percent and 12. The Middle East (0% to 5%) is forecast to start to recover part of its losses from 2011. 6. Stay-over tourism growth is expected to continue in line with the United Nations World Tourism Organisation (UNWTO) projections. The recovery in major source markets is expected to continue in positively impacting the local tourism industry. This outlook is supported by an increase of 11.ANNUAL ECONOMIC REPORT 2011 Financial services indicators for the first two months of 2012 showed new companies and new partnerships registration are up by 5.4 percent in total tourist arrivals for the first two months of 2012. Arrivals are expected to increase between 3 percent and 4 percent. followed by the Americas and Europe (2% to 4%). This is due to higher imported inflation. 57 .

Acknowledgement The Economics and Statistics Office gratefully acknowledges the assistance of the following local companies and agencies in generating the data sets used in this edition of the Annual Economic Report: Caribbean Utilities Company Cayman Islands Customs Department Cayman Islands Department of Tourism Cayman Islands General Registry Cayman Islands Land and Surveys Department Cayman Islands Monetary Authority Cayman Islands Planning Department Cayman Islands Stock Exchange Cayman Islands Treasury Department Cayman Islands Water Authority Cayman Water Company Department of Immigration Information & Communication Technology Authority Maritime Authority of Cayman Islands Port Authority of the Cayman Islands This document was produced by the Economics Unit of the Economics and Statistics Office (ESO). 58 .ANNUAL ECONOMIC REPORT 2011 7. General support from the staff of the ESO is gratefully acknowledged.

...................... 61 Table A3: Labour Force and Employment ......... 74 Table A18: Occupancy Rates and Length of Stay ............................................................. 79 Table A26: Water Production and Consumption..................................................... 83 Table A30: Fiscal Operations (CI$ Millions) ................................................... 65 Table A7: Work Permits ...................... 76 Table A21: Number of Project Approvals in Grand Cayman . 81 Table A28: Summary of Central Government Operations (CI$ Millions) ............................................................................................................. CI$ Millions ................................................................................ 69 Table A11: Financial Services Indicators ...... 64 Table A6: The Employed by Industry ......... 70 Table A13: Insurance Licences ....... 67 Table A9: Imports by Standard International Trade Classification ............. 70 Table A12: Banks & Trust Licences ....................... (CI$M) a/ ....................................... Millions of US Gallons ........................................................................................................................................ 78 Table A24: Value of Project Approvals in the Sister Islands (CI$ Millions) ................................ 77 Table A22: Value of Project Approvals in Grand Cayman (CI$ Million) ............................. 68 Table A10: Domestic Credit from Retail Banks..........Financing Debt........................................................ CI$ Millions .............................................................................................. 78 Table A25: Building Permits in Grand Cayman . 73 Table A17: Visitor Arrivals (‘000) and Cruise Ship Calls .... 71 Table A15: New Companies Registered in the Cayman Islands................. 82 Table A29: Central Government Debt and Self......... 60 Table A2: Consumer Price Index & Inflation .... 71 Table A14: Mutual Funds Domiciled in the Cayman Islands ................................................................................. 75 Table A20: Property Transfers: Number and Value (in CI$ Millions) ............. 84 59 ................. 74 Table A19: Total Stay-Over Arrivals by Country of Origin (‘000) ....................... 77 Table A23: Number of Project Approvals in the Sister Islands .................... 62 Table A4: Composition of the Employed Labour Force ........................................................................ 72 Table A16: Money and Banking Survey: Monetary Assets (CI$ Millions) ..................... 80 Table A27: Electricity (‘000 megawatt hours) ...............ANNUAL ECONOMIC REPORT 2011 8............. 66 Table A8: Merchandise Trade................................................... Statistical Appendix Table A1: Gross Domestic Product ............................................................................................ 63 Table A5: Composition of the Unemployed Labour Force ..

4 1.986 2006 2.065.0 2.ANNUAL ECONOMIC REPORT 2011 Table A1: Gross Domestic Product Nominal Real GDP Mid-Year Real GDP GDP 2007 Prices Population Per Capita (CI$M) (CI$M) (000s) ($) 1998 1.388.4 52.3 43.2 42.1 2.1 54.9 39.1 54.888 2003 1.5 4.416.9 2.0 46.1 60 .2 2.448.7 2.6 4.927 2009 2.032.627.534.739.6 51.3 (0.5 2.6 56.860.362 2002 1.9 55.0 0.3 43.167.1 52.134.0 54.6 2.2 51.9) (3.0 0.5 2.9 2.1 55.280 2010 2.637.5 51.5 42.5 43.0 38.784.7 2. Economics & Statistics Office Year Real GDP Growth (%) 5.0 2.663.1 48.745 2008 2.929.4) 1.249.0 48.9 6.1 2.637.362.5 2.9 48.559 2011 2.200 1999 1.5 44.5 2.627 2007 2.411.269.4 49.4) (6.468.528.205.590 2004 2.322.7 2.300 2005 2.661.6 1.628 2001 1.202 Source: Cayman Islands Government.445.740 2000 1.2 53.8 40.8 56.8 41.155.8 3.510.

3 1.9 79.4 100.9 0.2 66.6 1997 71.8 2007 95.7 92.7 1998 73.3 2.2 93.6 2004 92.2 98.5 100.5 98.8 0.3 70.4 2.8 7.5 80.0 72.3 2006 94.4 2003 83.9 82.1 4.8 2000 79.7 2.5) 2010 98. Economics & Statistics Office 61 .5 1996 69.2 1.4 3.1 2002 82.3 2.3 Source: Cayman Islands Government.0 1999 78.9 2008 99.4 2.3 6.5 0.6 (1.4 82.7 86.3 2011 100.3 68.7 77.8 96.5 4.ANNUAL ECONOMIC REPORT 2011 Table A2: Consumer Price Index & Inflation (June 2008=100) Year Index Year-end Index Average Inflation Rate (%) 1995 67.2 2.1 2009 98.4 2005 92.7 2001 80.

269 35.410 19.999 37.464 1. Economics & Statistics Office Year Labour Force Total Employed Unemployment Rate (%) 4.549 2009 38.0 6.6 3.8 4.905 28.0 6.0 7.725 21.026 1.550 2003 29.355 1.959 35.079 2004 30.827 1.905 27.971 25.330 2011 37.946 1.5 2.016 943 2007 37.311 2005 36.267 2.725 895 1998 22.313 34.620 35.3 3.040 1997 21.370 1.820 18.820 905 2001 27.845 980 1996 20.405 2008 38.620 20.1 4.6 4.353 Source: Cayman Islands Government.9 5.958 2.257 28.3 Note: No Labour Force Surveys were conducted in 1999 and 2000 *2004 results are derived from Spring LFS and not Fall 2004 LFS on account of hurricane Ivan in September 2004.983 2.450 1.4 3.431 36.109 2002 28.303 2006 35.862 2. 62 .767 35.5 5.1 4.311 2010 37.ANNUAL ECONOMIC REPORT 2011 Table A3: Labour Force and Employment Total Unemployed 1995 19.2 6.

993 14.862 12.383 2002 27.983 15.355 1996 19.ANNUAL ECONOMIC REPORT 2011 Table A4: Composition of the Employed Labour Force Year Total Caymanian Non-Caymanian 1995 18.464 18.395 2007 36.450 16. 63 .794 19.827 13.048 19.665 1997 20.026 16.016 17.725 10.932 2009 35.705 8.390 10.775 14.506 2008 37.189 2011 35.525 10.910 2010 34.267 15.973 14.919 Source: Cayman Islands Government.370 10.946 14.958 16.854 2004 28.479 13.490 8.820 11.295 2001 25.520 19.621 17.518 20.439 2006 35.335 1998 21.171 2005 35.025 17.969 19.355 12.362 2003 28.845 10. Economics & Statistics Office Note: No Labour Force Surveys were conducted in 1999 and 2000 *2004 results are derived from Spring LFS and not Fall 2004 LFS on account of hurricane Ivan in September 2004.

550 1.311 798 2002 1.713 617 2011 2.ANNUAL ECONOMIC REPORT 2011 Table A5: Composition of the Unemployed Labour Force Year Total Unemployed Caymanian Non-Caymanian 1995 978 703 275 1996 1.303 1.039 264 2006 943 682 261 2007 1.311 1.549 1.353 1.049 692 357 1997 895 579 316 1998 907 609 298 2001 2.680 631 2010 2.109 1.405 1.029 376 2008 1.311 887 424 2005 1.058 492 2003 1. Economics & Statistics Office Note: No Labour Force surveys were conducted by the Statistics Office in 1999 or 2000 64 .330 1.732 621 Source: Cayman Islands Government.079 857 222 2004 1.169 380 2009 2.

869 4.785 3.945 5.160 4.660 4.475 4.570 2.286 Transport.375 2.895 2.364 1.220 15.572 10 819 370 33 100 71 15.026 37. Cayman Islands Government.932 7..345 3.923 4.790 2.373 3.025 2.505 3.608 4. Retail.607 2011 5.821 4.862 27.ANNUAL ECONOMIC REPORT 2011 Table A6: The Employed by Industry Year Agric.427 4.830 18.370 20.446 6.205 2.437 8. Health & Social Communications & Services Business 1.493 5.870 1.016 36.552 5.923 5. Hotel & Restaurant 4. Postal Insurance. Public Administration & Financial Education. Construction.568 5.920 2.960 2.695 7.982 4.801 2007 7.995 2. Manufacturing.836 9.032 1.946 35.640 3.660 1.710 7.499 33.475 1.570 3.125 3.820 25.715 5.310 2.908 1.478 Source: October Labour Force Surveys.687 8.984 35.175 6.456 8.664 4.375 5.300 1. Others Total Community & Personal 2.066 2009 6.892 7.962 2.025 3.995 16.725 21.087 4.487 2008 7.258 8.830 3.644 6. Economics & Statistics Office Note: No Labour Force surveys were conducted by the Statistics Office in 1999.270 1.114 2.230 2.480 3.845 19.920 34.555 5.050 2010 5.477 7.456 Wholesale.385 2. Utilities 2.220 1.347 5.310 4.640 5.188 Recreation.980 1.099 4.734 5.213 8.265 3.011 1.610 1.450 4.545 3.793 5.840 2.648 4.580 6.399 4.355 28. 2000 and 2005 2004 and 2006 Labour Force Surveys refer to the Spring Labour Force 2010 refers to the 2010 Census 65 .175 7.105 1. Fish.058 7.425 1.267 1992 1993 1994 1995 1996 1997 1998 2001 2002 2004 2006 8.

198 1996 9.350 2008 26.123 2004 20. 66 .883 2002 15.852 Source: 1995-1999 data from Economics and Statistics Office. 2000-2009 data from Immigration Department.763 2006 22.951 1997 11.508 2005 21.284 2001 13.ANNUAL ECONOMIC REPORT 2011 Table A7: Work Permits Year Total 1995 10.779 2003 17.516 2009 23.531 2010 20.885 1999 … 2000 14.452 2011 19.393 2007 26.314 1998 12.

4 (886.4 (512.7 1.0 (728.6 3.5 (526.4 42.9 (849.6) 2006 868.9) 1998 447.9 (854.9 (707.8 (421.3) 2009 744.4 11.0 (573.2 1. CI$ Millions Year Imports Exports Trade Balance 1995 331.1 (679.0) 2000 575.9 11.5) 2010 690.8) 2007 867.7 13.3) 2011 762.1 3.0 19.ANNUAL ECONOMIC REPORT 2011 Table A8: Merchandise Trade.4 (328.2 19.0) 2005 976.8) 1999 452.7) 2004 718.0 (493.7) 2001 514.1) 2003 546.5 2.2 (742.2) 1996 314.7) 1997 423.8 17.1) 2002 496.2 (312.9 2.9) 2008 898.0 (446.2 (451.7 2.8 (933.7 12.5 16.8 1.8) Source of basic data: Cayman Islands Customs Department and Economics & Statistics Office 67 .

1 96. Manufactured Articles 274.2 118.4 27.E.2 26.7 91.7 92.3 112.1 31.0 0.6 31.1 0.2 73.0 119.6 273. 32.9 70.9 185.5 134.0 Commodities and Transactions Not 86.5 77.2 28.1 material) Machinery & Transport Equipment 155.8 25.6 97.3 0.1 85.8 95.0 0.1 90.2 134.9 107.3 All Chemical & Rel.9 60.5 2010 690.3 8.9 138.3 118.9 226.4 Materials Animal and Vegetable Oils.6 126.2 Mineral Fuels.7 Manufactured Goods (classified chiefly by 129.9 29.5 12.6 9.7 2007 867.C.0 9.8 113.5 27.7 2009 744.4 Beverages and Tobacco 24. Fats and Waxes 0.8 2008 898.9 9.8 28.1 Classified Elsewhere Source of basic data: Cayman Islands Customs Department and Economics & Statistics Office 68 .0 56.ANNUAL ECONOMIC REPORT 2011 Table A9: Imports by Standard International Trade Classification (CI$ Millions) 2006 Total Imports 868.6 Inedible Crude Materials 12.3 268.8 128.0 183.4 Misc. Lubricants and Related 71. Prods N.9 70.8 78.0 0.4 2011 762.0 Food and Live Animals 81.5 31.

3 0.4 7.8 24.5 Dec-08 2.8 410.3 5.6 114.7 79.437.7 0.240.5 49.0 7. CI$ Millions Dec-07 Total Credit to Businesses Production & Manufacturing Agriculture.5 169.8 0.0 92.7 143.9 1.6 92.3 364. Food.ANNUAL ECONOMIC REPORT 2011 Table A10: Domestic Credit from Retail Banks.729.3 73.484.8 60.1 971. Rental and Leasing Companies Other Business Activities (General Business Activity) Other Financial Corporations Credit to Households Domestic Property Motor Vehicles Education and Technology Miscellaneous* NonProfit Organizations 2.3 1.2 7.049.069. Bar & Entertainment Services Transportation.7 1.1 184.2 167.8 113.2 5.8 387.090.4 Dec-11 2.716.3 1.5 27.3 25.1 22.0 298.007.598.9 78.8 6.8 4.7 41.5 210.8 1.2 40.4 25.1 136.1 17.4 5.1 36.375.4 1.0 218.0 1.0 46.2 *Miscellaneous include consolidated debt.3 9.7 430.0 67.9 7.4 791.0 20.487.8 98. Fishing and Mining Manufacturing Utilities Construction Services Accommodation.5 39.7 166.9 383. Recreational & Other Professional Services Trade and Commerce Wholesale & Retail Sales Trade Real Estate Agents.7 101.3 0.5 291.1 47.1 130.7 118.6 1. insurance.8 4.5 15. Storage & Communications Education.9 260.9 519.8 425.4 454.9 1.1 9.8 44.8 15.724.8 155.8 66.458.626.5 187.3 149.679.6 1.5 952.0 Dec-09 2.3 57.2 3.0 15.0 109.4 42.3 179. medical & travel Source: Cayman Islands Monetary Authority 69 .295.7 37.9 186.6 70.3 1.9 167.9 13.2 1.6 11.2 177.0 4.5 607.6 351.7 1.8 25.0 79.2 Dec-10 2.1 116.6 78.

438 8.232 168.225 2007 281 793 7.1 8.277 111.932 8.113 2011 234 766 11.7 7.861 167. Cayman Islands General Registry * Cap = Capitalization Year Table A12: Banks & Trust Licences Class A Banks Year 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Bank & Trust 22 21 19 16 16 14 13 12 12 12 Bank 4 4 3 3 3 5 5 5 5 3 Total Bank & Trust 26 25 22 19 19 19 18 17 17 15 Class B Banks Bank & Trust 142 130 118 113 112 106 96 95 87 83 Bank 214 192 178 169 160 156 164 154 142 136 Total Bank & Trust 356 322 296 282 272 262 260 249 229 219 Source: Cayman Islands Monetary Authority Total 382 347 318 301 291 281 278 266 246 234 70 .6 5.312 2010 246 768 8.8 9.92 1.258 9.84 1.870 11.808 7.57 857 2005 305 759 6.65 1.56 1.748 2008 278 805 7. Cayman Islands Stock Exchange.134 12.015 2006 291 767 7.254 43.7 9.ANNUAL ECONOMIC REPORT 2011 Table A11: Financial Services Indicators Bank & Insurance Captive Mutual New Stock Stock Trust Licences Insurance Funds Companies Market Listings Licences Premiums Registered Cap*.5 9.523 7.016 36.9 4.70 1.892 53.2 4.106 10.30 710 2003 349 672 4. (US$B) (US$B) 2002 383 629 4.210 75.064 143.579 2009 266 808 7.52 1.413 14.5 9.157 145.94 735 2004 322 722 5.285 7.156 Source: Cayman Islands Monetary Authority.33 1.863 162.7 9.

ANNUAL ECONOMIC REPORT 2011 Table A13: Insurance Licences Class B (international) Insurers Captives Total Class Excluding CaptivesTotal Class Year A SPCs SPCs Only B 2002 27 539 61 600 2003 27 565 79 644 2004 27 604 89 693 2005 26 632 101 733 2006 27 623 117 740 2007 28 641 124 765 2008 28 652 125 777 2009 28 650 130 780 2010 30 619 119 738 2011 27 615 124 739 Source: Cayman Islands Monetary Authority Class A (Domestic) Insurers Total Insurance Companies 627 671 720 759 767 793 805 808 768 766 Table A14: Mutual Funds Domiciled in the Cayman Islands Year Administered Licensed Funds Funds 2002 641 51 2003 592 48 2004 616 67 2005 598 79 2006 548 105 2007 543 119 2008 510 129 2009 448 131 2010 435 133 2011 424 120 Source: Cayman Islands Monetary Authority Registered Funds 3.429 7.134 9.714 Total 4.593 4.481 8.808 5.438 9.106 8.258 71 .870 8.231 8.523 9.944 8.249 6.932 7.751 9.285 4.168 5.413 9.870 9.

694 595 2006 10.764 220 2010 7.892 10.104 230 2011 7.536 293 2009 6.210 12.863 8.ANNUAL ECONOMIC REPORT 2011 Table A15: New Companies Registered in the Cayman Islands Year Exempt Non-Resident 2002 5.480 674 2005 8.691 533 2008 10.795 768 2003 5.277 14.941 692 2004 7.016 7.861 7.980 156 Source: Companies Registrar Resident 310 439 530 650 588 531 510 487 432 485 Foreign 143 182 208 271 385 477 522 392 391 443 Total 7.735 569 2007 12.157 9.254 8.064 72 .232 11.

106.949.4) Broad Liquidity 5.5 298.6 4.2 934.1 Net Domestic Assets 1.1 1.257.729.306.066.4 4.6 100.6 101.6 4.3 Other items net (678.307.446.7 5.7 5.7 86.5 3.7 Time and savings deposits 592.5 2.2 5.8 3.7 Monetary Authority 106.6 5.2 5.6 895.250.0 3.5 2.0 85.724.1 597.1 KYD Deposits Demand deposits 239.9 2.414.3) (757.6 Claims on private sector 2.7 4.763.4 4.6 Commercial Banks 3.4 1.352.ANNUAL ECONOMIC REPORT 2011 Table A16: Money and Banking Survey: Monetary Assets (CI$ Millions) Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Total Assets 5.2 Domestic credit 2.568.218.5 59.6 5.6 US dollars share (%) 88.1 2.008.326.2 981.632.5 84.1 874.9 237.414.6 87.7 254.987.967.2 89.477.3 683.0 66.8 88.817.1 2.5 2.836.2) (800.4 94.7 3.0 608.500.017.5 4.3 3.3 2.9 250.1 935.7 962.579.316.0 293.1 219.836.9 Net Foreign Assets 3.981.307.5 4.5 92.1 3.0 FOREX deposits of which: US dollars 3.2 Source: Cayman Islands Monetary Authority and Economics and Statistics Office 73 .949.752.6 Claims on central government 118.8 83.968.9 914.2 3.989.056.578.3 620.598.0) (868.9 Broad money (KYD) M2 Currency in circulation 81.7 832.9 54.437.1 3.1 2.982.1 3.6) (774.251.880.4 4.9 2.0 2.2 271.752.7 2.550.1 1.5 85.7 Claims on other public sector 71.7 172.568.729.4 89.9 846.8 3.

8 5.4 1999 394.0 43.9 1.8 4.0 7.5 1.1 2005 55.4 6.574.247.715.799.3 7.1 1.3 1.173.1 1.0 4.2 44.5 1.4 4.0 2006 267.1 2009 272.7 4.0 2004 259.9 48.2 37.855.4 n/a Apt/Condo Length of Stay (Days) 7.3 1.7 2004 61.7 42.3 43.3 1999 71.2 871.2 800.1 1.4 46.9 1.1 1.3 7.3 2005 167.7 2008 302.886.4 40.8 1.6 6.8 n/a 74 .8 46.966.9 1.5 1.385.9 2010 68.030.ANNUAL ECONOMIC REPORT 2011 Table A17: Visitor Arrivals (‘000) and Cruise Ship Calls Year Stay-Over Cruise 1996 373.3 1.6 4.520.5 Source: Cayman Islands Department of Tourism Total Arrivals 1.5 2000 354.2 44.4 6.9 6.2 1.597.9 4.8 6.792.197.8 2.430.214.3 7.710.5 4.5 2008 62.035.0 1997 66.6 4.1 2002 50.2 1.275.7 4.693.8 2011 309.2 2003 51.007.8 46.5 4.6 40.7 43.7 6.2 1.5 4.7 6.0 5.0 1.7 4.0 2006 59.7 1.9 2001 334.9 1.548.8 7.8 1.2 866.6 1.8 2002 302.1 51.9 4.401.6 Cruise Ship Calls 525 572 518 638 612 711 732 825 732 784 802 657 570 547 570 523 Table A18: Occupancy Rates and Length of Stay Year Apt/Condo Occupancy Rates (%) 1996 66.7 2007 61.9 2000 62.2 1998 73.8 2003 293.8 2001 55.877.1 2011 n/a n/a Source: Cayman Islands Department of Tourism Hotel Occupancy Rates (%) Hotel Length of Stay (Days) 4.953.819.6 1998 404.0 7.930.3 1997 381.8 1.5 1.1 2007 291.4 2010 288.553.4 2.1 52.0 1.112.0 2009 59.6 2.

1 1996 274.1 2004 205.0 34.5 16.9 21.5 259.8 267.5 2011 242.4 13.4 1999 280.6 2002 244.9 22.0 288.9 167.3 2010 228.0 19.3 21.5 2009 215.4 373.7 32.7 14.0 2001 270.2 15.9 19.3 309.2 14.1 334.6 Source: Cayman Islands Department of Tourism Others 43.5 2006 217.9 2007 231.8 51.9 272.ANNUAL ECONOMIC REPORT 2011 Table A19: Total Stay-Over Arrivals by Country of Origin (‘000) Year USA Europe Canada 1995 266.4 17.6 20.3 34.7 18.4 16.1 20.2 404.3 18.5 18.3 12.9 26.8 18.1 75 .3 34.6 22.7 354.4 Total Arrivals 361.9 17.3 291.6 15.4 18.1 24.4 2008 240.8 27.9 2000 281.2 34.3 25.7 33.9 13.2 28.8 293.2 37.2 1998 295.2 381.6 2003 232.8 48.9 20.5 21.3 14.1 2005 118.5 20.6 20.5 302.6 55.8 12.9 61.1 302.2 1997 278.1 17.5 19.2 394.7 10.7 18.

335 339.5 201 7.472 319.055 267.0 2008 2.512 551.1 2005 2.344 317.0 2003 2.2 128 2.287 416.1 178 25.293 222.3 2.562 326.708 632.462 341.208 270.4 2.886 657.0 2004 2.4 2.989 274.777 691.2 153 3.045 397.2 2007 2.0 242 19.619 307.4 2011 1. Leasehold transfers include lease transfers and subleases.3 2.1 2.842 269.2 168 9.787 316.6 2001 1.1 2.8 1.ANNUAL ECONOMIC REPORT 2011 Table A20: Property Transfers: Number and Value (in CI$ Millions) Year Freehold Leasehold Total Transfers Number Value Number Value Number Value 1995 1.3 2009 2.494 229.011 259.5 2.6 1.846 172.3 2.3 2.289 558.2 20061 2.2 127 1.7 360 23.3 143 2.279 287.9 147 4.8 2. 76 .5 1997 2.3 205 1.729 191.8 245 1.027 173.9 2.9 2000 1.956 695.7 2.151 281.1 179 4.1 1.885 452.612 634.2 127 3.6 2002 1.8 125 6.2 2.9 1998 2.868 257.1 323 76.8 181 0.9 Source: Cayman Islands Lands & Survey Department 1 Property transfers numbers and values were revised for 2006 only.856 194.640 450.190 544.357 324.2 1.5 1999 2.8 1996 2.5 2010 1.

4 18.3 20.1 149.3 125.1 7.3 21.0 60.5 2009 170.5 110.9 2005 194.6 48.6 63.2 3.6 24.4 29.5 456.1 74.5 54.5 2007 88.0 0.9 131.131 973 1.2 18.2 6.5 133.0 14./ Houses Commercial Government Condos 2000 96 369 34 21 2001 79 309 45 7 2002 88 327 83 4 2003 129 385 67 12 2004 111 359 52 6 2005 132 532 95 15 2006 222 336 70 15 2007 112 437 56 10 2008 103 424 43 7 2009 109 426 46 3 2010 73 327 43 9 2011 52 332 36 14 Source: Cayman Islands Planning Department Hotel Industrial Other Total 1 3 5 1 4 1 1 16 11 17 34 17 26 30 14 11 12 5 9 511 442 424 504 427 394 574 493 580 526 505 496 1.5 84.7 2006 294.9 0.5 2008 141.9 105.048 896 948 1.6 1.9 7.0 29.9 468.9 80.7 66.3 74.3 266.1 74.0 2001 44.122 962 939 Table A22: Value of Project Approvals in Grand Cayman (CI$ Million) Year Apt/ Houses Commercial Government Condos 2000 90.5 25.0 55.3 511.1 Source: Cayman Islands Planning Department Hotel Industrial Other Total 75.8 2002 82.4 11.5 3.9 93.0 16.ANNUAL ECONOMIC REPORT 2011 Table A21: Number of Project Approvals in Grand Cayman Year Apts.8 2003 65.7 45.1 2.9 3.9 92.3 310.198 1.7 241.8 15.0 16.5 44.8 119.4 24.2 620.2 59.2 311.7 54.0 97.8 103.7 9.123 1.0 55.0 122.5 116.4 8.1 236.0 0.9 421.1 2004 153.4 45.0 1.8 7.7 24.6 2011 27.8 77 .248 1.168 1.4 5.9 480.1 2010 35.5 9.0 29.7 67.8 40.3 71.2 21.

3 1.5 1.0 2001 2.4 13.1 2002 3.6 0.0 0.9 2.8 3.1 0.7 0.1 2008 7.7 9.8 8.3 0.1 1.1 0.4 8.4 1.9 36.8 0.0 1.2 27.2 0.2 0.3 0.3 2003 4.8 0.6 0.1 0.1 1.2 2006 6.3 1.3 1.6 1.1 Source: Cayman Islands Planning Department Commercial 0.4 1.7 0.8 Total 12.8 0.9 78 .5 2.7 0.3 17.4 4.5 3.9 12.1 2009 5.1 2011 7.2 0.9 0.7 2007 6.2 3.4 9.0 0.4 0.5 1.7 2.ANNUAL ECONOMIC REPORT 2011 Table A23: Number of Project Approvals in the Sister Islands Year Houses Apt/Condo Hotel Government 2000 49 3 7 2001 41 7 5 2002 21 2 5 2003 29 3 4 2004 36 1 11 2005 43 4 5 2006 39 1 10 2007 35 6 9 2008 40 5 2 3 2009 34 2 3 2010 27 2 8 2011 35 2 Source: Cayman Islands Planning Department Commercial 6 9 2 14 13 9 5 5 5 2 5 2 Industrial 7 3 9 2 4 1 10 1 1 1 Other 53 46 74 60 75 73 67 49 53 62 71 62 Total 125 111 113 112 140 135 132 104 109 103 114 102 Table A24: Value of Project Approvals in the Sister Islands (CI$ Millions) Year Houses Apt/Condo Hotel Government 2000 5.2 6.0 9.0 2010 6.6 0.1 2004 6.0 7.9 1.3 0.8 0.3 2005 5.1 Industrial 1.2 1.7 5.0 0.8 19.6 Other 1.8 2.8 2.6 7.9 0.5 23.9 3.

0 355.3 34.0 3.2 6.081 1.5 28.6 2011 37.6 446.2 29.3 2.6 35.7 183.8 62.3 2009 92.4 87.1 1.0 4.9 39.9 183.090 1.1 2007 2008 2009 2010 2011 Apartment/ 219 182 171 114 77 Condo Houses 496 503 532 390 348 Commercial 186 176 116 120 112 Government 16 36 16 12 15 Hotel 4 1 Industrial 10 14 7 7 1 Other 159 169 303 347 270 Total 1.1 45.4 93.8 2.9 0.3 Value (CI$M) 2008 116.5 6.7 502.4 49.ANNUAL ECONOMIC REPORT 2011 Table A25: Building Permits in Grand Cayman Category Number 2007 116.6 116.6 162.145 990 823 Source: Cayman Islands Planning Department 79 .6 205.2 12.4 100.5 10.7 0.6 13.7 146.0 2010 49.

028.7 2004 1.097.657.730.252.3 1.1 2009 1.371.7 779.147.9 637.9 1.4 1.6 1.3 1.ANNUAL ECONOMIC REPORT 2011 Table A26: Water Production and Consumption.697.4 1999 874.056. Millions of US Gallons Year Production1 Consumption 1995 592.0 678.1 1997 730.7 2008 1.069.1 2003 1.6 1996 631.741.8 2000 986.560.704.9 1.8 1998 808. Cayman Water Company 1 Excludes Non-Potable Water 80 .6 1.5 2001 1.197.173.301.646.977.9 849.7 2005 1.9 1.1 1.720.3 908.7 2006 1.8 2010 1.959.6 1.8 Source: Cayman Islands Water Authority.2 2002 1.7 2007 1.5 1.639.8 1.291.970.5 2011 1.

1 200.4 168.3 153.8 263.1 168.7 2002 466.4 290.5 191.0 1995 297.5 258.1 158.2 378.0 284.7 6.8 554.5 2001 449.5 2011 606.5 363.5 534.1 2005 463.9 1999 390.1 3.3 279.5 4.6 1997 347.7 290.4 249.0 258.1 262.3 181.5 3.8 3.8 140.1 2010 605.2 2007 584.4 2008 596.3 3.0 6.0 5.7 2009 608.5 3.4 213.3 1998 381.3 203.7 228.5 221.9 3.0 425.4 118.ANNUAL ECONOMIC REPORT 2011 Table A27: Electricity (‘000 megawatt hours) Year Production Domestic Consumption Industrial/ Public Commercial Lighting 147.2 2000 426.2 228.8 491.0 386.5 179.7 427.5 4.7 124.2 289.3 343.0 4.6 444.9 281.0 407.3 5.7 211.9 6.3 189.3 2006 535.2 2004 433.4 5.4 5.3 191.2 547.2 200.7 3.8 251.1 222.8 553.8 Source: Caribbean Utilities Company 81 .1 1996 309.4 183.4 312.2 Total 268.7 559.4 2003 489.

2 521.7) (19.7 31.1 195.8 (5.7 161.5 1997 214.4 393.9 30.2 37.3) (33.7 677.2 46.2 305.4 519.2) 18.1 316.9) 18.5 233.6 280.4 349.1 2007 513.6 295.5 39.7) 67.5 106.3 84.2 2001 285.4 290.8 Overall Balance (2.8 47.1) 3.6 26.9) (3.5* 150.1 105.5 143.1 2009 473.1 278 17.3 244.0 2008 522.2 626.ANNUAL ECONOMIC REPORT 2011 Table A28: Summary of Central Government Operations (CI$ Millions) Current Capital Total Expenditure Expenditure and Expenditure Net Lending 1995 163.9 2000 278.9 552.1 2005 428.0) (149.0) (31.2) 36.7 535.8 526.2 2004 336.2) 87.3 2006 500.3 2010 515.9 66.6 381.3 (6.7 23.2 29.5 (13.4 21.1 *Annual depreciation is included in current expenditure starting 2008 Source: Cayman Islands Treasury Department Year Total Revenue Current Balance 19.5 430.7 21.6 604. 82 .6 141.6 33.2 283.6) (88.9 0.2 311.6) (4.6 672.9) (203.0 (41.2 378.5 9.6 2002 314.6 214.4 43.8 34.0 446.5 1998 248.7 27.7 (61.1 42.7 245.8 26.5) (80.3 (39.4 187.7 2003 326.7) (1.0 2011 545.1 1996 190.9 99.2 268.3) Note: Interdepartmental purchases and services and vehicle and equipment maintenance fees were netted in current expenditure from 1992 to 1999.8 1999 275.7 166.6 433.

7 4.Financing Debt.7 (0.3 (0.4 9.7 106. (CI$M) a/ Year Disbursed Drawings Exchange Gain/ Amortisation Interest Outstanding Debt (Loss) Payments 1995 51.8 23.0 14.8 11.5 52.1 2004 157.3 9.4 154.0 2001 143.5 8.5) 20.7 14.3 133.9 1999 98.6 22.2) 25.6 2008 354.9 166.0 11.ANNUAL ECONOMIC REPORT 2011 Table A29: Central Government Debt and Self.9 19.9 25.3 3.9 27.9 124.8 2002 132.9 39.4 1997 82.2 13.2 0.9 136.8 2003 143.9 (0.5 184.9 2011 613.3) 21.2 4.2 (0.5 49.3 18.5 1998 93.1 10.4 2010 592.9 2007 210. 83 .8 14.5 7.5 8.9 32.4 6.5 2006 179.6 3.6 2000 107.6 23.6 1.7 11.3 25.7 2009 513.9 5.3 7.1 5.0 6.5 10.7 10.9 Source: Cayman Islands Treasury Department a/ Self-financing debt refers to the loans raised by the central government on behalf of agencies which are required to reimburse the servicing of these loans.8 21.1 1996 67.5 5.4 9.2) 16.3 2005 180.

6 0.9) (203.7 12.2 29.0 3.3 21.9 37.8 489.2 0.3 Source: ESO and Treasury Department 84 .0 248.0 41.4 20.9 0.9 2.0 18.6 0.6 31.9 0.8 41.3 535.0 153.3 162.1 (184.5 80.5 122.2 (60.5 28.9) 45.1 21.9) 149.3) 80.5 55.6 40.6 236.6 (132.4) 18.9 56.2 23.2) 0.7 430.7 106.3 0.7 105.0 27.2 289.5 4.0 99.8 11.0 (138.7 1.2 97.2 21.4 4.2 (20.7 (149.1 521.6 42.7) 4.9 (80.0 (47.6 84.3 94.5 36.3 59.5 158.9) 7.4 184.0 131.4 672.3 (25.0 1.1 32.0 56.3 1.2 1.2 457.4 35.5 84.7 20.3 224.6 158.8 2011 CI$ 545.ANNUAL ECONOMIC REPORT 2011 Table A30: Fiscal Operations (CI$ Millions) 2008 Total Revenue Coercive Revenue Taxes on International Trade & Transactions Domestic Taxes on Goods & Services Taxes on Property Fines Other Taxes Non-coercive Revenue Sale of Goods & Services Investment Revenue Other Operating Revenue Total Expenditure Current Expenditure Personnel Costs Supplies & Consumables Subsidies Transfer Payments Depreciation Interest Payments Extraordinary Expenses Other Executive Expenses Capital Expenditure & Net Lending Capital Acquisition ( now Equity Injections) Capital Development ( now Executive Assets) Net Lending Primary Balance Current Balance Overall Balance Financing Net Borrowing Disbursements Loan Repayment Change in Cash (minus = increase) CI$ 522.1 125.9) (88.4 166.9 176.5 277.1 526.2 0.9 2.2 0.7 141.7 4.6) 203.3 150.8 0.6 19.8 87.7 677.9 145.0 64.2 16.7 (25.9 519.4 1.8 0.4 18.4 458.6) 59.1 2.9 152.5 42.9 216.9 0.3 2010 CI$ 515.9 238.5 2009 CI$ 473.2) (61.7 109.5) 88.5 27.1 0.1 1.1 626.6) (3.0 56.2 82.8 105.1 3.5 245.6 603.

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