(CMR) Real gross domestic product (GDP) in the Cayman Islands is estimated to have increased by 4 % in the first nine months of 2023 despite a decrease in the construction industry.
According to the Third Quarter Economic Report for 2023, both building permits and project approvals decreased in both value and volume. After reaching its highest value on record in the same period of 2022, building permit values declined by 27.9% to $591.8 million for the period. This decline was attributed to the non-recurrence of four hotel permits, which overshadowed continued growth in the residential category.
No hotel permits were issued during the period relative to the same period in 2022 when the value of hotel permits reached $297.0 million. Additionally, industrial permits contracted by 75.8% to $2.0 million, while permits for houses declined by 54.2% to $56.1 million.
However, indicators suggest that the Islands’ output expanded across other core sectors. The largest positive changes were seen in hotels & restaurants, which grew by 26.4%. This supported growth of 6.7% and 7.7% in the transport storage & communication and the other sectors, respectively.
The recovery in tourism-related activities, coupled with high summer temperatures, also boosted activities in the electricity and water supply sector by 9.9%. The financing and insurance services sector, the largest contributor to GDP, grew by an estimated 3.1% for the first nine months of the year.
The average Consumer Price Index increased by 3.9%, as all divisional indices except one grew for the period. Merchandise imports expanded by 0.5% to $1,112.1 million due to increases in non-oil imports as the value of oil imports declined.
Broad liquidity, or the money supply, contracted by 2.3% as residents' local and foreign currency deposits declined. The weighted average lending rate for KYD rose by 169 basis points (bps) to 9.10%, while the prime lending rate increased by 212 bps to 8.25%.
Domestic credit expanded by 2.9% due to a 3.0% rise in credit to the private sector and a 1.5% increase in public sector loans.
See the full 3rd Quarter Economic Report below:
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