Cayman Islands’ Current Account Deficit Narrowed in 2019

"The Cayman Islands’ Balance of Payments (BOP) and International Investment Position (IIP) Report 2019 shows the statistical summaries of the economic and financial transactions between residents of the Cayman Islands and the rest of the world. The statistics are generated from survey returns of local businesses and other organizations, as well as data provided by the Cayman Islands Monetary Authority (CIMA)."

The Cayman Islands’ Balance of Payments (BOP) and International Investment Position (IIP) Report 2019 shows the statistical summaries of the economic and financial transactions between residents of the Cayman Islands and the rest of the world. The statistics are generated from survey returns of local businesses and other organizations, as well as data provided by the Cayman Islands Monetary Authority (CIMA).

The latest BOP statistics for 2019 shows that the total payments of residents to non-residents exceeded receipts, thus resulting in a current account deficit of $484.7 million, compared to the $773.0  recorded in 2018.

The Current Account deficit for 2019 was estimated to have contracted by 37.3 percent to reach $484.7 million from the deficit of $772.9 million recorded in 2018.  This emanated mainly from lower deficits in the primary and secondary income sub-accounts together with the higher surplus on the services account. In contrast, trade-in-goods recorded higher net payments, reflecting the higher spending on imported goods for 2019 over 2018 by 18.3 percent.

The IIP shows the value and composition of foreign assets and liabilities of residents at the end of the year. The latter represents the total investments of non-residents in the Cayman Islands.

At the end of 2019, the Cayman Islands residents’ net financial investment abroad was estimated at CI$47.0 billion. These consisted of portfolio investment ($20.0 billion); financial derivatives ($29.5 billion); other investments (currencies, loans, deposits and other investments) ($11.8 billion); and reserve assets ($0.15 billion). On the other hand, net direct investments in the Cayman Islands were estimated at $14.5 billion.

Other information may be obtained from the Report posted at the Economics and Statistics Office website: www.eso.ky