📈 Cayman's GDP experiences 3.6% growth in first half of 2023

The Cayman Islands reported a 3.6% growth in gross domestic product (GDP) for the first half of 2023, according to the Semi-Annual Economic Report by the Economics and Statistics Office. However, this growth was tempered by an inflation rate of 5.3% during the same period, which meant that the benefits of the expanding economy were not widely felt. The lending rates also rose, with the weighted average lending rate increasing to over 9% from 6.53%, and the prime lending rate rising to 8.13% from 4.88%. This resulted in higher costs for most people, despite the economic growth. 📊

The report also highlighted the rapid population growth in the Cayman Islands, with a 12.4% increase in work permits, a 7.3% rise in electricity consumption, and a 10.6% growth in water consumption in the first half of 2023. The GDP growth was largely driven by increased activities in the tourism sector, leading to growth in transport, utilities, and other sectors. The hospitality industry experienced the highest growth at 25.9%, while the financial services sector, the largest contributor to the GDP, expanded by 2.6% during the same period. 🏝️

Despite the positive growth in the financial sector and the rebound in tourism, the Economics and Statistics Office warned that the robust economic demand in the first half of the year could be undermined by sustained inflationary and interest rate pressures that dampened demand in the second half of the year. The full report is available on the ESO website. 💼