📈 Cayman Islands' GDP sees 4.2% growth, nearing CI$71k per capita in 2023

The Cayman Islands' real gross domestic product (GDP) experienced an estimated growth rate of 4.2% in the last year, a slight drop from the 5.2% growth in 2022. The nominal GDP per capita income was calculated at $70,985 for 2023, a figure that more than 60% of the working population doesn't reach annually, exacerbating the ongoing cost of living crisis. As the economy expands, it appears to benefit primarily the wealthy, with ordinary citizens grappling with an inflation rate of over 3.8% in 2023, following a 9.5% surge in the cost of living in 2022. 📊

Despite the growing economy, wealth continues to be concentrated among the top earners, and the trickle-down economic policy adopted by successive governments is failing to assist local families. The tourism sector, particularly hotels and restaurants, contributed significantly to the growth. However, hospitality wages remain low as the government has yet to address the minimum wage issue. The rising cost of utilities, food, and housing continues to fuel inflation, affecting the working and middle classes. Employment grew by 3.8% to 58,504 in 2023, but this was outpaced by labor force expansion, leading to a 5% unemployment rate among Caymanians. 🏦

As the local population and visitor numbers grew in 2023, electricity consumption increased by 7.8% and water consumption by nearly 12%. The construction sector also had a successful year, with project approvals and certificates of occupancy in Grand Cayman increasing by 27% and 13.6% respectively compared to 2022. However, building permits saw a 10.7% decline, reflecting the number of completed projects rather than the market's condition. Despite a contraction in real estate activity, property transfers still amounted to a substantial $1,155.6 million in sales. The GDP is projected to grow by 2.8% in 2024, primarily due to anticipated growth in tourism and auxiliary sectors. However, external pressures are expected to result in a 2.1% inflation rate, and the overall unemployment rate is projected to be 2.9%. 🏗️