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Government intends to borrow $230 million in 2021 and another $100 million in 2022, to fund capital projects.
The Organisation for Economic Cooperation and Development has raised its 2021 global growth forecast to 5.6%.
Economic activity in the Cayman Islands is estimated to have contracted by 8.2% in the first nine months of 2020, when measured as the gross domestic product in real terms.
The global coronavirus pandemic triggered a historic sell-off in the stock markets only for them to mount a stunning recovery in equities before the end of 2020.
The gross domestic product growth of the Economic Co-operation and Development (OECD) area slowed to 0.7% in the fourth quarter of 2020 as most countries posted year-on-year declines.
Cayman’s gross domestic product fell by 11.4% in the first six months of last year.
Unemployment in industrialised countries continued to decline at the end of 2020 as leading indicators in most advanced economies continued to improve.
Cayman’s “really strong” economic and fiscal position means it is the best-placed country in the Caribbean to respond meaningfully to the current crisis, according to economist Marla Dukharan.
The Organization for Economic Cooperation and Development believes the global economy will bounce back from the coronavirus pandemic, and grow by as much as 4.2% in 2021.
Cayman’s economy entered the difficult period of the COVID-19 pandemic and related lockdown measures this year with a 1.9% first-quarter increase of its gross domestic product in real terms.
The Economics and Statistics Office reported that Cayman’s economic performance in 2019 was one of the strongest in recent years, generating an estimated gross domestic product of 3.2%.
Well-known Silicon Valley entrepreneur and venture-capital investor Marc Andreessen’s 2011 note claiming that “software is eating the world” will go down as one of...
The Dart group is scaling back operations at The Ritz-Carlton and Kimpton Seafire resorts in a move that will impact hundreds of jobs.
Unemployment in developed countries remains above pre-COVID 19 levels, but in Organisation for Economic Co-operation and Development countries, jobless rates fell on average to...
Following the COVID-19 pandemic-containment measures around the world, real gross domestic product in OECD countries has suffered an unprecedented 9.8% fall in the second quarter of this year.
Cayman’s economy is expected to contract by 7.2% this year before recovering partially with a 6.4% expansion in 2021, according to Finance Minister Roy McTaggart.
Composite leading indicators for July in OECD countries continued to strengthen from the COVID-19-crisis lows across all major economies. However, the numbers remain below long-term trends and at levels lower than those recorded prior to the coronavirus outbreak.
The Economics and Statistics Office has this week released its COVID-19 Economic Impact Assessment and Stimulus Plan that is informing government policy on tackling the economic fallout from the pandemic. Finance Minister Roy McTaggart outlined the key findings of the report at the end of May, stating that the economy might contract by 12.2%, with nearly 10,000 jobs lost, including almost 3,000 Caymanian employees.
As Cayman gradually restarts its domestic economy, thousands of workers are being given the green light to return to their jobs as part of the first phase of reopening.
Current economic projections predict recessions all over the world at levels rarely, if ever, seen before. The Cayman Islands, for instance, is facing a 15% contraction of its economic activity this year. But what does this really mean? In terms of economic activity, it would transport the islands back to where they were in 2013.
Around 6,000 workers are expected to return to work in one capacity or another as the first phase of reopening Cayman's economy begins. Retailers,...
Five months after the government presented a record $1.6 billion two-year budget, the coronavirus pandemic has thrown all financial plans into disarray.
Business leaders are exploring various solutions to keep people employed during the coronavirus crisis.
The global COVID-19 pandemic is posing serious challenges to economies everywhere and we should expect the same in the Cayman Islands. Guest columnist Paul Byles examines some of the potential impacts we may see in the coming months.
After years of positive economic growth, Cayman is likely to face an economic downturn that will come sooner and be more intense than previously thought, according to Premier Alden McLaughlin.
Contrary to the defeatist narrative that many on the left will surely advance, this economic success is a direct result of the president’s pro-growth policies.
Recently released statistics on inflation may have come as no surprise to Cayman Islands residents whose wallets lately have seemed a bit lighter.
Monday’s front page was not a deliberate attempt to inspire a rose-hued perspective about current events. It was, fortunately and refreshingly, an accurate reflection of the day’s news in these islands.
Productivity growth, after languishing during the Obama presidency, is taking off again.
Smith was a practical man who wrote about the importance of “common sense.” After two centuries, we know that most of his common-sense insights as to the way the world works were indeed correct then and are now.
The GOP may well get skewered in the midterms and Mr. Trump may be denied a second term from the sheer weight of hectoring by liberal Democrats, Bush-era Republicans and the media, but history will treat him more kindly.
People voting with their feet is the strongest indication of whether they approve or disapprove of the policies of any state or country.
The bottom line is that cronyism promotes and protects inefficiency. And when an economy is less productive, that results in lower incomes and diminished living standards. Sadly, this is not just a problem in developing and transition nations.
I would bet, unless China institutes a true rule of law, that economic growth will slow and eventually cease – without the country ever becoming rich on a per capita income basis.
The authors wanted to find out whether bad economic news (as captured by data on “GDP growth, deep recession, unemployment, crisis”) leads to pro-market reforms.
New immigration figures confirm that the Cayman Islands population is not just changing; it has already changed.
Public choice economists recognize that most people have some concern for others, but their main motive – whether they are voters, politicians, lobbyists or bureaucrats – is self-interest.
If this government is, as it claims to be, “of and for the people,” it needs to re-examine what its regulatory policies are doing to the very people it purports to represent.
Sorry Bitcoin, offshore dollars were a private currency for years – largely virtual, without official government sanction and lightly regulated – long before initial coin offerings came along. And it’s run by much more trustworthy and careful people.
Socialism requires – actually, socialism is – industrial policy, whereby government picks winners and losers in conformity with the government’s vision of how the future ought to be rationally planned.
Can you think of one socialist experiment that worked in the last several hundred years?
If hard times hit, you are out of a job and over-extended, credit card balances can be more easily renegotiated than mortgage debt. Student loans, unlike most other debt, are not dischargeable in bankruptcy.
It is good that Premier McLaughlin has correctly recognized the increasingly cosmopolitan makeup of our growing society, and the growing diversity among the Caymanian half of our population.
Nonpartisan research predating the Trump candidacy indicates the 15 percent cut in taxes on business profits enabled by corporate reforms should increase investment between 7.5 percent and 15 percent.
As an economist and – yes, as a globalist – I have a lot of confidence in the entrepreneurial spirit of Americans. I think we will find a new path to growth, upgrade our workforce’s skills, and ultimately the wage-productivity gap will close.
Cayman did not simply break our previous record for airplane arrivals in the first quarter of this year – it shattered them, putting us on pace for a fifth-straight record-breaking year.
The Congressional Budget Office projects that new federal borrowing over the next 10 years will total $12.4 trillion and that at the end of 2028, the debt will be $28.7 trillion – 96 percent of GDP, up from 39 percent in 2008.
The scary-sounding global debt numbers were a bit of a publicity stunt; they got our attention, even if they were intellectually misleading.
Economists mostly sort into two camps – those who believe the post-World War II period was exceptional and those at the White House and a few others (count me in) who believe the best is yet to come.
A capital gains tax, in effect, raises the risk and price of the investment, resulting in lower investment and slower growth and job creation.
The threat is not the red ink. The real danger is an ever-increasing burden of government spending, driven by entitlements.
Perhaps half-hearted Brexit officials secretly hope, if they manage to bungle the negotiations sufficiently, that the people of the U.K. will change their minds about leaving the EU.
Globalism (or globalization, or internationalism, or the policies of “Davos Man,,” or whatever you want to call it) increasingly is perceived to be about more than free trade and comity between nations. In the minds of market-oriented people, it is getting linked with other policies that cause considerable angst.
Given how few people are actually convicted of money-laundering, the overwhelming evidence is that 99 percent of the people being forced to submit to these costly and time-consuming proposed regulations will not be guilty of money-laundering, terrorism or whatever, and thus should not be harassed by government.
Uncle Sam’s incessant borrowing – just like irresponsible home mortgages in the 2000s – could again send financial institutions barreling over a cliff.
Liberals say conservatives are trying to use the court to break the power of public sector unions. But if the only way they can maintain their political power is through coercion, then they do not deserve that power in the first place.
The tragedy is that the people of Venezuela should be enjoying a very high per capita income, as are the Norwegians, if they had made better political choices.
All news is economic news, because everything affects the economy, or reveals attitudes or behaviors that soon will affect it. And all economic news is bad – especially good economic news, because it gives rise to bad behavior.
Fomenting spurious anxieties about national security is the first refuge of rent-seeking scoundrels who tart up their protectionism as patriotism when they inveigle government into lining their pockets with money extracted from their fellow citizens.
With continued good fortune, perseverance and high-quality education, we have no doubt that Cayman — energized and enabled by our financial services sector — will not only build on our half-century of success, but will surpass even those “miraculous” accomplishments.
Today's editorial cartoon
Overall, the Trump administration and Republican Congress – much like President Bush and his Republican Congress before them – are hardly addressing the genuine concerns of the great mass of voters who put them in power. Yet, the clients and executive class of the liberal state see the GOP as an existential threat to their systems of privileges and persecution so carefully erected during the Clinton and Obama years.
The cruise industry, along with stayover travel, are the two legs upon which Cayman’s hospitality sector stands.
No one knows at what percentage the debt’s deleterious effect on economic growth becomes severe; no sensible person doubts that there is such a point.
Let’s speculate about potential victories and defeats in 2018.
The energy and the intelligence are on the side of the entrepreneurs, not on the side of the government regulators. Ultimately, government central banks and financial agencies are going to lose this battle.
The recent 50th anniversary of the bank is a reminder of this gentleman, and one of Cayman’s finest citizens.
Congress is thinking about giving Puerto Rico a new five-year exemption from the law. That is the least it should do.
Congratulations to Butterfield on its “golden” anniversary in the Cayman Islands. Here’s to your next 50 years.
There’s good news, there’s bad news and then there’s … gray news. Developments out of Brussels this week fell in the last category, as the European Union placed the Cayman Islands on a so-called “graylist” — meaning our government has made certain commitments in writing to address EU criteria on tax transparency and “fairness."
Economics is a science of incentives, and like all sciences it is never “settled.”
The late Mancur Olsen was a very accomplished academic economist who described the unfortunate tendency of vote-seeking governments to behave like “stationary bandits,” seeking to extract the maximum amount of money from taxpayers.