Cayman Islands’ Current Account Deficit narrowed in 2022

The Cayman Islands’ Balance of Payments (BOP) and International Investment Position (IIP) Report 2022 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 government departments, as well as data from the Cayman Islands Monetary Authority (CIMA) and other organisations.

The latest BOP statistics for 2022 show that the total payments of residents to non-residents exceeded receipts, thus resulting in a current account deficit of $539.4 million compared to the revised deficit of $661.8 million recorded in 2021.

This emanated mainly from a surplus balance on the services sub-account, as well as a reduction in the deficit on the secondary income sub-account. The services account balance improved mainly from the growth in travel services, which recorded a net surplus of $303.3 million in 2022, compared to a net deficit of $85.1 million in 2021. This outcome reflected the increased earnings from recreational and business travel. Net inflows from financial services rose by 4.5 percent, while the deficit on the goods sub-account improved by 5.2 percent to reach $540.0 million in 2022.

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 2022, the net international investment position stood at $61.2 billion, up from the $54.7 billion recorded in 2021. The stock of assets held by residents overseas grew by $2.5 billion to $158.9 billion, while liabilities fell by $4.0 billion to $97.7 billion.

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