GEORGE TOWN, Cayman Islands – Preliminary estimates show that the Cayman Islands’ economy expanded at an annualised rate of 2.9 percent in the first quarter of 2025, slightly moderating from the 3.6 percent growth estimated in Q1 2024.
The expansion was broad-based, fueled by sustained demand across core service industries.
Notable expansions include 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.
The 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 year’s first three months. This reflected revenue of $554.1 million and expenditure of $309.3 million.
The central government’s outstanding debt declined to $396.9 million as of March 2025 from $445.9 million as of March 2024.
Meanwhile, The Cayman Islands’ Annual Economic Report 2024, released by the Economics and Statistics Office (ESO), revealed that the Cayman Islands’ economy continued its growth streak in 2024, with real GDP expanding 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, had a solid 2.9 percent increase, driven by robust demand and the jurisdiction’s growing share in global insurance markets.
The economic performance for the year was largely driven by the services sector, which accounted for 89.1percent of GDP and increased by 2.9 percent.
Actual indicators suggest robust growth in the construction sector (up 3.0%), real estate (2.9%), other services (up 3.1%), the wholesale and retail trade sector (up 3.7%), and health and social work (up 3.0%).
Overall, the 2024 economic upturn signals continued confidence in the Cayman Islands’ development, while pointing to a generally synergistic and integrated economy with complementary sectors.
The government ended the year with a net borrowing of $6.5 million. This resulted from the total revenue of $1,127.1 million falling below its total expenditure of $1,133.6.
Despite the excess spending for the period, the central government’s outstanding debt decreased to $405.2 million at the end of 2024, representing a 10.6 percent decrease from the figure recorded at the end of 2023.