(CNS): Economists estimate that strong growth in financial services, as well as what they describe as underlying demand, led to an expansion in domestic production last year, boosting real gross domestic product (GDP) by 1.8%. It has been. The Cayman Islands Annual Economic Report 2021, released Thursday by the Economic Statistics Office (ESO), found that demand for consumer goods and property drove growth in the local economy as it emerged from a recession caused by the pandemic.
Following an economic contraction of more than 5% in 2020, overall indicators for 2021 show construction growing by 7.9%, property by over 6.3%, and wholesale and retail by 5.4%. The tourism dependent sector is still growing. Witnessed decline.
But while Cayman’s nominal GDP per capita was estimated at $72,580 in 2021, the reality is that most people don’t benefit from the wealth they create. Three-quarters of his workforce make less than his $72,000 a year.
However, a small number of high-income earners and international trading partners are currently distorting the economy, boosting demand for Cayman’s key services and fueling the economic expansion of offshore industries and property markets. Real estate activity surged last year, with the total value of real estate transfers he increased by 75%. Grand Cayman’s building permit values also increased him by over 29% and planning approval values increased by over 10%.
The official average inflation rate for 2021 is 3.3%, compared with a rise of 1% in 2020. But the statistics do not reflect reality, given that inflation spikes towards the year, largely from rising energy and food prices.
Gross employment increased by 10.3%, which has lagged the expansion of the labor force, resulting in an overall rise in unemployment to 5.7% and Cayman unemployment to 8.5%.
GDP is expected to grow a staggering 3.4% this year as a result of an expected recovery in the tourism and transport sectors, while local economists expect inflation to come at 7.9%, largely from external pressures. said there is.
just, just One month before The ESO had already reported that inflation had beaten these forecasts. By the end of June, inflation was already over 12% and showed no noticeable signs of abating during the third quarter.
Meanwhile, the overall unemployment rate is still projected at 4.5%. As this generally means a higher proportion of local labor, Caymanians will continue to face even more unprecedented challenges from the cost of living and stagnating low wages, regardless of GDP growth.
Please refer to Cayman Islands Annual Economic Report 2021 Above ESO website.