Excerpts from the 2022 First Quarter Report:
Real GDP is estimated to have expanded at an annualised rate of 3.8% in the first quarter of 2022, an acceleration relative to the 0.4% growth estimated in the first quarter of 2021 (see Figure 2). The economic performance was broad-based, with the acceleration largely reflecting a recovery in tourism and transportation-related sectors.
Economic activity in the real estate sector also remained robust during the quarter, with an estimated growth of 5.2%. Growth in construction decelerated in the quarter to an estimated growth of 1.8%. The other sectors to improve were government services (2.0%), agriculture and fishing (4.4%), mining & quarrying (1.5%) and manufacturing (1.6%) (see Figure 3).
The economic performance in the first quarter supports the macroeconomic outlook for the calendar year 2022, with economic activity measured by real GDP projected to expand by 3.4% (see Table 1). It is expected that continued recovery in tourism and transport should support activities in auxiliary sectors. Notwithstanding, there is some downside risk to the forecast as continued tightening of monetary policy in developed markets could dampen the recovery in tourism. The link between Cayman’s interest rates and that of the US could also lead to excessive borrowing costs locally and inhibit local demand.
Full Report: QUARTERLY ECONOMIC REPORT: First Quarter 2022 -