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Economy and Banking Sector of the Cayman Islands

National Currency

Cayman Islands Dollar (KYD)

The official currency is the Cayman Islands dollar (KYD), which is pegged to the US dollar at a fixed rate: 1 KYD = 1.25 USD.

Pegged Rate

1 KYD = 1.25 USD

Main Sectors

Main sectors of the economy of the Cayman Islands are:

  • tourism
  • offshore financial services

GDP

Nominal GDP (2015)
2.8 bln KYD  (+0.03%)
Real GDP Growth (2014)
2.4 %  (2013: 1.5 %)

According to Economics and Statistics Office, nominal GDP of Cayman Islands in 2015 was 2.8 bln KYD.

Cayman Islands outperforms the European Union in terms of real GDP growth with the average annual differential coming to 0.0% over the past 3 years (2011 - 2014). In 2014 real GDP growth was 2.4% which was above the Euro Area average (0.9%) and above the European Union average (1.3%).

Real GDP Growth in Cayman Islands.

Chart 1. Real GDP Growth in Cayman Islands. Source: Economics and Statistics Office.

Inflation Rate

CPI, Year Average (2016)
-0.6 %  (2015: -2.4 %)

According to Economics and Statistics Office, inflation rate in Cayman Islands in 2016 expressed as annual percentages of average consumer prices was -0.6% which was below the Euro Area average (0.2%) and below the European Union average (0.3%).

Inflation Rate in Cayman Islands.

Chart 2. Inflation Rate in Cayman Islands. Source: Economics and Statistics Office.

Unemployment Rate

Unemployment Rate (2015)
4.2 %  (2014: 4.7 %)

According to Economics and Statistics Office, unemployment rate in Cayman Islands in 2015 was 4.2% which was below the Euro Area average (10.9%) and below the European Union average (9.4%).

Unemployment Rate in Cayman Islands.

Chart 3. Unemployment Rate in Cayman Islands. Source: Economics and Statistics Office.

Credit Ratings (as of May 2018)

Fitch
-
Moody's
Aa3 (high grade), outlook stable

The Cayman Islands has a sovereign credit rating assigned by Moody's: the rating is Aa3 (high grade), outlook stable.