Although we may be called ‘overly-optimistic’ or worse names
by the Citizens Against Virtually Everything group, we at the Caymanian Compass
have decided to spend this Friday’s editorial in the audacity of hope.
For, if people wish to observe them, some signs of economic
improvement are starting to emerge.
The international publicity for the Islands recently,
largely due to election-related silliness emanating from the United States, has
been hard to term “positive”. However, the United States has recently seen two
more important developments.
First, it seems as though unemployment in the US is finally
starting to decline. Second, indications from the US Federal Reserve are that
interest rates will not increase until 2014.
Both of these developments are extremely positive for Cayman
Islands residents who need to borrow money or who depend on the tourism
industry for their livelihood.
In addition, Cayman saw the highest number of stay-over
visitors since the 9-11 terrorist attacks on the United States during the year
just ended. Although cruise ship numbers continue to lag, lets not forget that
stay-over tourists spend much more per person within our local economy than
cruisers and that any significant increase in stay-over numbers means a big
boost for the local economy.
Also, it appears from an analysis of work permit numbers
over the past year that a downward spiral in those permits has bottomed out and
could perhaps be on the path toward reversal for 2012. It’s really too early to
say yet, but we’ll keep an eye on the numbers in the coming months.
Contrary to opinions often espoused in the hunt for votes,
strengthening work permit numbers are one indicator of a stronger overall local
economy and, statistically in the recent past, when work permit numbers have
been higher, Caymanian unemployment has been lower. So, its not time to break
out the bubbly just yet. Unemployment and job opporunities are still problem
No. 1 for the Cayman Islands as a whole. However, it appears that 2012 is
starting out with some hope things will get better.
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