Cayman Economy Struggles
Friday, March 5, 2010
The Cayman Islands Economics and Statistics Office has released its Economic
Report for the Third Quarter of 2009, showing further deterioration in the island’s economy
in all but the banking sector.
Bank sector assets continued to grow, albeit at a lower level than earlier
in the year, at a rate of 9.5% on Q3 2008, as both net domestic and net foreign
assets continued to expand.
The third quarter of 2009 saw a marginal improvement in new company registrations, following a
severe drop recorded at the start of last year. However, new company registrations in the period
were down 39.2% on the third quarter of 2008, to total 5,840.
Mutual fund registrations also fell during Q3 2009 compared to a year earlier, with 453
new registrations, down 4.4% on Q3 2008.
New work permits also continued to decline, with construction,
financial services and tourism-related services dragging the figures down.
Stock exchange listings also declined over the quarter, with 1,316
listings, down 20.6% on Q3 2008.
The central government’s fiscal deficit widened further to KYD125m (USD152m), doubling that recorded in 2008. The total outstanding debt of the central government increased to KYD421.7m from KYD291.6m a year earlier.