Cayman Islands: Economic Outline

Economic Indicators

The Cayman Islands are an overseas territory of the United Kingdom. With no direct taxation, the islands are a thriving offshore financial center. Over the last twenty years, the Cayman Islands have experienced rapid growth in almost all sectors, especially in banking, insurance, and offshore management, as well as tourism, financial, and insurance services. According to the Economics and Statistics Office (ESO), economic activity in the Cayman Islands was estimated to have increased by 3.3% in the first nine months of 2024. The rise in output during the period was primarily driven by strong demand for services. Total visitor arrivals fell to 1,123,394 in the first three quarters of 2024, mainly due to a 15.4% decline in cruise arrivals, which dropped to 792,880 as the number of cruise ship calls to the Cayman port decreased by 58 to 241. In contrast, stay-over arrivals rose by 2.3% to 330,514 over the same period. Meanwhile, construction indicators showed a decline during the first three quarters of 2024. According to government figures, real economic growth is projected at 2.6% for the financial year ending 31 December 2025, followed by a moderate decline to 2.4% in 2026.

The country’s public finances are healthy: in the first three quarters of 2024, the central government posted a surplus of KYD 97.8 million, with revenue of KYD 914.0 million and expenditure of KYD 816.1 million. Outstanding debt fell to KYD 421.1 million as of September 2024, down from KYD 469.0 million a year earlier. For the year ending 31 December 2025, a core government operating deficit of KYD 26.2 million is forecast, a reversal from the KYD 54.7 million surplus originally budgeted. Core government debt is projected at KYD 501.9 million by end-2025, declining to KYD 451.5 million by end-2026 (official governmental figures). The Cayman Islands economy is largely dominated by the services sector (85.4% of GDP), while industry and agriculture have minor shares (8.2% and 0.5%, respectively - World Bank's latest data available). Tourism accounts for a considerable part of GDP and about three-quarters of foreign currency earnings. The financial and insurance services sector are estimated to account for almost one-third of GDP, which correlates with the presence of 85% of the world's hedge funds and over 15,000 mutual funds registered in the country (the Cayman Islands is among the most sophisticated and performing offshore centers in the world). In recent years, the government has reaffirmed its commitment to improving transparency and good governance as well as the fight against tax evasion and money laundering by adopting a framework for fiscal responsibility (FFR). In October 2023, the Cayman Islands was removed from the Financial Action Task Force's "increased monitoring" list, and in January 2024, it was also removed from the European Commission’s Delegated Regulation (EU) 2024163, commonly referred to as the "EU AML List", effective from February 7, 2024. According to the Economics and Statistics Office (ESO), the average annual inflation rate in the Cayman Islands was 2.6% in 2024. After rising slightly to 2.9% in 2025, it is projected to ease to 2.5% in 2026.

The residents of the Cayman Islands enjoy a high standard of living (the GDP per capita PPP was estimated at USD 86,689 in 2024 by the World Bank), but despite the high cost of living, the country does not operate a state-funded welfare system for its citizens. That said, the archipelago enjoys social stability and racial harmony, very little crime, and a stable level of unemployment. Data from the Economics and Statistics Office show that the unemployment rate stood at 2.4% as of the fall of 2024.

Monetary Indicators
Cayman Island Dollars (KYD) - Average Annual Exchange Rate For 1 GBP

Source: World Bank - Latest available data.

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Latest Update: October 2025