October 10, 2025
Preliminary estimates show that the Cayman Islands’ economy expanded at an annualised rate of 2.9 percent in the first quarter of 2025, a slight moderation from the 3.6 percent growth recorded in Q1 2024. The expansion was broad-based and supported by sustained demand across core service industries.
Notable areas of growth included electricity and water supply (4.6%), hotels and restaurants (4.5%), business activities and administrative services (4.3%), health and social services (4.7%), and finance and insurance services (2.9%). Key infrastructure sectors also posted gains, with wholesale and retail trade up 3.9 percent and construction increasing by 2.3 percent.
This performance reinforces a positive outlook, with real GDP projected to grow by 2.6 percent for the year. The central government recorded an overall surplus of CI$244.8 million in the first three months of 2025, reflecting revenue of $554.1 million and expenditure of $309.3 million. Outstanding government debt declined to $396.9 million as of March 2025, compared with $445.9 million in March 2024.
The Cayman Islands’ Annual Economic Report 2024, released by the Economics and Statistics Office (ESO), confirmed that the economy continued its growth streak in 2024. Real GDP expanded by 3.1 percent to $5.21 billion, underpinned by expansion across all major sectors. Financial services, which account for over 30 percent of GDP, recorded a solid 2.9 percent increase, driven by strong demand and the jurisdiction’s growing role in global insurance markets.
The services sector remained the main driver of growth, accounting for 89.1 percent of GDP and increasing by 2.9 percent. Actual indicators pointed to robust expansion in construction (3.0%), real estate (2.9%), other services (3.1%), wholesale and retail trade (3.7%), and health and social work (3.0%).
Overall, the 2024 upturn signaled continued confidence in the Cayman Islands’ development and highlighted the economy’s integrated structure, with complementary sectors supporting growth. The government ended the year with net borrowing of $6.5 million, as total revenue of $1,127.1 million fell slightly below total expenditure of $1,133.6 million. Despite this, the central government’s outstanding debt decreased to $405.2 million by the end of 2024, representing a 10.6 percent reduction from the end of 2023.
Source: (Caribbean News Global)
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