·       Nominal GDP per capita income dropped last year to $68,674 from $72,658 in 2019.

Cayman’s economy contracted by an estimated 6.7% in 2020, in the wake of the COVID-related lockdown measures, which hurt the economy.

The economic contraction followed a period of strong expansion with an average Gross Domestic Product (GDP) growth of 3.5% over the previous five years.

The lockdown measures, including ongoing border closures, combined with a fall in global and local demand, led to the real GDP declining.

According to the Annual Economic Report 2020 released by Cayman’s Economics and Statistics Office, nominal GDP per capita income dropped last year to $68,674 from $72,658 in 2019. The report highlights a decline in most sectors of the economy in 2020, with hotels and restaurants hit hardest, suffering a 76.6% decrease.

The services sector was down23.2%, transport and communication declined by 14.4% while the wholesale and retail trade sector dropped 4.3%.

Insignificant  growth in finance and insurance sector

However, the finance and insurance sector, which accounts for approximately 32.7% of GDP, expanded by 0.3%. This was mainly due to a rise in insurance activities evidenced by a rise in net premium across most categories, the economic report noted.

However, the domestic banking sector contracted despite a rise in credit. On the other hand, COVID-mitigation efforts, and border closures, increased activity in the healthcare sector, which went up 15.7% and government services, up 7.2%.

Construction activity, which rebounded strongly in the second half of 2020, showed mixed results for the full year. The value of building permits in Grand Cayman increased by 88.1% to $555.6 million, mainly due to commercial projects.

The value of planning approvals went down by 0.8% to $883.2 million. The total value of property transfers fell by 6.4% to $807.1 million, as both freehold and leasehold transfers dropped.

Central government recorded an overall fiscal deficit of $116.4 million, as revenue collection declined to $797.4 million and expenditure increased to $913.8 million. Merchandise imports fell by 6.3% to US$1.11 billion, reflecting declines of 37% and 2.2% in oil-related and non-oil imports, respectively.