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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 islandís 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 governmentís 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.