Economy of the Cayman Islands

Economy - overview: With no direct taxation, the Cayman Islands are a thriving offshore financial center. More than 40,000 companies were registered in the islands as of 2000, including almost 600 banks and trust companies; banking assets exceed $500 billion. A stock exchange was opened in 1997. Tourism is also a mainstay, accounting for about 70% of GDP and 75% of foreign currency earnings. The tourist industry is aimed at the luxury market and caters mainly to visitors from North America. Unspoiled beaches, duty-free shopping, scuba diving, and deep-sea fishing draw almost a million visitors to the islands each year. About 90% of the islands' food and consumer goods must be imported. The Caymanians enjoy one of the highest outputs per capita and one of the highest standards of living in the world.

From the earliest settlement of the Cayman Islands, economic activity was hindered by isolation and a limited natural resource base. The harvesting of sea turtles to resupply passing sailing ships was the first major economic activity on the islands, but local stocks were depleted by the 1790s. Agriculture, while sufficient to support the small early settler population, has always been limited by the scarcity of available land.

The advent of modern transportation and telecommunications in the 1950s led to the emergence of what are now considered the Cayman Islands' "twin pillars" of economic development: international finance and tourism.

Education is compulsory to the age of 16 and is free to all Caymanian children. Schools follow the British educational system. Ten primary, one special education, and three high schools are operated by the government. In addition, there is a technical school, a law school, and a community college.

GDP: purchasing power parity - $930 million (1997 est.)

GDP - real growth rate: 5% (1997 est.)

GDP - per capita: purchasing power parity - $24,500 (1997 est.)

GDP - composition by sector:
agriculture: 1.4%
industry: 3.2%
services: 95.4% (1994 est.)

Population below poverty line: NA%

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices): 3% (1998)

Labor force: 19,820 (1995)

Labor force - by occupation: agriculture 1.4%, industry 12.6%, services 86% (1995)

Unemployment rate: 5.1% (1996)

Budget:
revenues: $265.2 million
expenditures: $248.9 million, including capital expenditures of $NA (1997)

Industries: tourism, banking, insurance and finance, construction, construction materials, furniture

Industrial production growth rate: NA%

Electricity - production: 290 million kWh (1998)

Electricity - production by source:
fossil fuel: 100%
hydro: 0%
nuclear: 0%
other: 0% (1998)

Electricity - consumption: 270 million kWh (1998)

Electricity - exports: 0 kWh (1998)

Electricity - imports: 0 kWh (1998)

Agriculture - products: vegetables, fruit; livestock, turtle farming

Exports: $2.17 million (1997)

Exports - commodities: turtle products, manufactured consumer goods

Exports - partners: mostly US

Imports: $432 million (1997)

Imports - commodities: foodstuffs, manufactured goods

Imports - partners: US, Trinidad and Tobago, UK, Netherlands Antilles, Japan

Debt - external: $70 million (1996)

Economic aid - recipient: $NA

Currency: 1 Caymanian dollar (CI$) = 100 cents

Exchange rates: Caymanian dollars (CI$) per US$1 - 0.83 (3 November 1995), 0.85 (22 November 1993)

Fiscal year:

1 April - 31 March

See also : Cayman Islands