The economic recovery in the Cayman Islands continued in 2022. Economic output exceeded its 2019 levels following a 3.7% rise in real gross domestic product (GDP). Labor market conditions improved. Government of the Cayman Islands (GOCI) maintained low debt levels as fiscal balances improved. Stronger-than-expected revenue compensated for ongoing expenditure pressures including elevated social and health-related expenditure.

With a slowing global economy, the 2023 growth rate is expected to moderate following the pandemic related recovery. Inflation is expected to decelerate but will remain elevated. Main risks are stemming from economic weakness in the main tourism source market, the United States of America (USA), and from potential instability in global financial markets impacting Cayman’s financial services industry.