(CMR) Cayman's Gross Domestic Product (GDP) estimate for 2020 shows that the local economy contracted by 5.7%, reversing nine consecutive years of positive economic performance, according to the Cayman Islands’ System of National Accounts Report 2020.
The Cayman Islands’ System of National Accounts Report 2020, which presents the economic performance of the Islands using the Gross Domestic Product (GDP), was released Wednesday. The GDP estimate is based on data collected from businesses and other establishments in the Islands,
According to the report, the domestic economic performance in 2020 is more favorably than the 2020 estimates for the United Kingdom (-9.4%), Latin America & the Caribbean (-6.9%), and the Euro Area (-6.4%) but worse than the declines for Canada (-5.2%), and the USA (-3.4%).
Fourteen of the eighteen industries declined in 2020 led by hotel & restaurant services (-53.2%); transport & storage services (-42.3%); other services, which is dominated by diving & watersport activities (-24.6%); administrative & support services (-7.7%); and manufacturing services (-7.1%).
The only industries to post positive performances in 2020 were professional, scientific & technical activities – comprising primarily of legal and accounting activities (7.0%); human health & social work activities (6.3%); public administration & defense (3.6%); and financial & insurance services (1.0%).
The financial & insurance services industry continued its expansion in 2020, albeit at a reduced rate compared to 2019. The sector grew by 1.0% in 2020 after increasing by 2.5% in 2019 and 2.4% in 2018.