Cayman Islands Economy Analytics

Key economic indicators including GDP, inflation, and interest rates

GDP

$2.1K

Gross Domestic Product

GDP Per Capita

$44,388

GDP per person

Inflation Rate

2.0%

Annual change in consumer prices

GDP

Gross Domestic Product

GDP Per Capita

GDP per person

Inflation Rate

Annual inflation rate

Unemployment Rate

Percentage of labor force that is unemployed

Interest Rate

Central bank interest rate

Government Debt to GDP

Government debt as percentage of GDP

Private Debt to GDP

Private sector debt as percentage of GDP

Households Debt to GDP

Household debt as percentage of GDP

Additional Insights

Expert analysis of Cayman Islands Economy trends and investment implications

Market Overview

The Cayman Islands presents a moderately stable economic environment for real estate investment, with a low inflation rate of 2% and a manageable interest rate of 4.25%. However, a relatively high unemployment rate of 6.6% suggests potential challenges in rental demand and payment reliability. Currency stability remains a key advantage for foreign investors, mitigating FX risks.

Key Findings

Data-driven insights

•The inflation rate at 2% has decreased by 39.4% since 1915, indicating stable purchasing power for renters and investors.
•Current interest rates at 4.25% suggest moderate financing costs for investors, impacting mortgage affordability.
•An unemployment rate of 6.6% could potentially dampen rental demand and affect tenants' ability to meet rental payments.
•The local currency's stability offers a buffer against forex risks for international investors.

Market Trends

Historical patterns

•The inflation rate has significantly decreased over the past century, enhancing purchasing power.
•Interest rates have fluctuated but currently remain at a level favorable for long-term financing.
•Unemployment has shown variability, with current rates posing a challenge for rental markets.

For Investors

Actionable takeaways

•Consider leveraging the low inflation environment to lock in fixed-rate mortgages for long-term stability.
•Be cautious of potential rental income volatility due to the high unemployment rate.
•Utilize currency stability to explore foreign investment opportunities without significant FX hedging.
•Monitor employment trends closely as they directly impact rental demand and cash flow predictability.

Market Context

The Cayman Islands is an attractive investment destination due to its stable economic indicators and currency stability, despite challenges in the employment sector. Its strategic location and tax-neutral status further enhance its appeal to international investors.

💡 Insights based on historical data. Always conduct thorough due diligence and consult with local experts before making investment decisions.