Archive for the ‘financial statistics’ Category

Cayman imports fall by 2% in 1st quarter 2017

Thursday, August 10th, 2017

The total value of all goods imported into Cayman in the 1st quarter of 2017 was CI$ 207.8 million, which is a drop of some CI$ 4.3 million as compared with the same period last year.

According to officials from the Economics and Statistics office, the decrease was due to a 6.1% reduction in the total value of non-petroleum products, which make up almost 89% of all imports into the country. The fall in imports of machinery and road vehicles, chemical and related products, and other commodities fell significantly.

The quarterly trade statistics bulletin reported a 4% increase in food imports and a massive 50% increase in petroleum and related-products, due in part to another increase in the price of oil on the global market.

However, this was not enough to offset the decline in other goods. With import duty a significant source of government revenue, the fall in the value of goods could have an impact on the public purse for those first three months of the year to the tune of more than $1 million.

Cayman has the Least Complex Tax Jurisdiction worldwide

Wednesday, August 2nd, 2017

In accordance with TMF’s Financial Complexity Index 2017, the Cayman Islands is the least complex jurisdiction as regards taxation and accounting requirements.

TMF’s Financial Complexity Index 2017 ranks 94 jurisdictions across Europe, the Middle East, Africa, Asia Pacific, and the Americas. The Cayman Islands is ranked 94th, which means that this territory has simplified tax reporting requirements and has low rates of tax.

Other least complex jurisdictions are Jersey (90th), Hong Kong (91st), the UAE (92nd), and the BVI (93rd).

The most complex jurisdictions are Turkey (1st), Brazil (2nd), Italy (3rd), Greece (4th) and Vietnam (5th).

Cayman Economy grows by 3%, surpassing predictions

Tuesday, December 20th, 2016

Statistics released by Cayman Islands Government indicates that the local economy grew by around 3% in the 1st 6 months of 2016, surpassing predictions and reflecting the best growth rate in the country since before the economic crisis.

The forecast GDP growth for 2016 has now been adjusted from the expected 2.1% forecast by the finance minister during the budget to 3% because of the improved performance in the 1st part of the year. The government purse is also fuller than expected as the stronger economy has boosted revenue by 9.7%.

According to the latest numbers from the Economics and Statistics Office, the Cayman Islands Government expects to end the fiscal year with a surplus of $127.5 million, which is 10.8% higher than the CI$115.1 million the administration achieved in 2015. The finance ministry has also been getting on top of the government’s debt, which at the end of June was down 3.7% from last year to CI$501.3 million.

Following the release of the figures, Finance and Economic Development Minister Marco Archer said: “I am pleased to note that growth in the first half of 2016 improved on the 1.3% growth for the same period in 2015”. He added that it also exceeds the initial GDP forecast for the year of 2.1%, and is the highest growth rate since 2007.

The main boost to the economy, however, may be bad news for the environment as it is based on a growth in construction, quarrying and consumption. The semi-annual growth was due in large part to an 11.4% growth in construction, while wholesale and retail trade grew by 7.6%.

Growth in the financial services sector, which still accounts for the bulk of Cayman’s earnings, was considerably more modest. Financing and insurance services grew by 3.6%, which the ESO said down to the domestic lending activity of commercial banks rather than the offshore industry. While visitor numbers are still growing, the hotel and restaurant sector declined by just over 1%.

The GDP estimate for 2015 shows that the local economy was where the growth was concentrated. “The 2.8% growth exceeded the 2% advance estimate for the year based on early indicators,” Archer said. “Moreover, it was broad-based as all sectors in the economy turned in positive growth rates. This augurs well for the increased diversification of our economic base.”

Cayman tax haven holds more Japanese money than ever

Monday, May 30th, 2016

According to the Bank of Japan Japanese investments in financial securities in the Cayman Islands have hit a record high.

Those investments stood at a total value of about USD 675 billion as of the end of 2015, which is up about 20% from a year ago, the Bank of Japan statistics on international balance of payments showed on May 24.

The above-mentioned amount was more than double the corresponding figure at the end of 2005, and the largest ever since 1996, when comparative data became available.

This figure is the amount of money invested by Japanese companies, institutional investors and wealthy people in stocks and bonds of companies established in the Cayman Islands or in investment funds set up there.

The Cayman Islands is one of Japan’s 2 most favored overseas places for investments in securities, second only to the USA.

The statistics released by the Bank of Japan showed that the 74.4 trillion yen figure (USD 675 billion) is larger than the corresponding figures invested in France and Britain.

It is worth mentioning that some wealthy people in Japan who tried to hide their assets by using Cayman-registered companies or companies set up in other offshore centres have been notified by Japanese tax authorities that they have failed to declare income. “Among wealthy people, there are some who conceal their assets by setting up many paper companies and do not declare their incomes appropriately to Japanese tax authorities,” said Go Kawada, a former official of the National Tax Agency, who is now serving as an advisor to Yamada & Partners Certified Public Tax Accountants Co.

Global Oil Price decrease brought down Merchandise Imports in 2015

Friday, May 20th, 2016

In 2015, the total value of goods imported into the Cayman Islands decreased by 6.3% to settle at CI$ 763 million, as compared with CI$ 814.4 million recorded in 2014.

Hon. Marco Archer, Minister for Finance and Economic Development, noted that this decline in the value of imports reveals the fall in oil prices in the international market. The total value of petroleum products imported fell by 39.2% to CI$ 99.7 million.

However, the Minister clarified that “local demand continued to strengthen as shown by a 7% increase in the volume of fuel imports from 49,544 imperial gallons in 2014 to 53,018 imperial gallons in 2015”. Also, non-petroleum products increased by 2% to register at CI$ 663.3 million. As to non-petroleum products, machinery and transport equipment imports grew by 16%, traced to higher values of motors and generators, construction and mining machinery, office machines and automatic data equipment.

Small Cayman Island holds USD 265 billion in treasuries

Tuesday, May 17th, 2016

According to Bloomberg, a Caribbean financial centre favored by hedge funds is now the 3rd-biggest foreign owner of United States’ government debt.

More hedge funds are domiciled in the Cayman Islands than anywhere else in the world. According to data the US Treasury Department released on May 16, the Cayman Islands held $265 billion of Treasuries as of March, up 31% from a year earlier. It was the 1st time that the United States released details of bond holdings among OPEC and Caribbean countries, and it came in response to a Freedom-of-Information Act request submitted by Bloomberg News.

Bloomberg says that the stockpile makes this offshore tax haven the largest holder after China and Japan, which, being the world’s 2nd- and 3rd-biggest economies, each own more than USD 1 trillion of Treasuries.

About 60% of the world’s hedge-fund assets are domiciled in the Cayman Islands, according to a 2014 report by consulting firm Oliver Wyman & Co. The report also says that “a robust regulatory regime and no or low entity-level taxation allowed the Cayman Islands to build a long-lasting reputation as a global hedge funds hub”.

Annual Surveys on Cayman Economic Performance begin

Saturday, April 9th, 2016

From April 4, 2016 to May 20, 2016, the business surveys will run that consist of the System of National Accounts (SNA) and the Balance of Payments (BOP) surveys. The surveys conducted by the Economics and Statistics Office (ESO) seek to collect information necessary to measure the economic performance of the Cayman Islands as a whole and all the individual sectors. The surveys cover all entities that produce goods and services in the Cayman Islands.

The last SNA survey that was conducted in 2015 revealed that the gross domestic product (GDP) of the Cayman Islands amounted to CI$2.55 billion in 2014 after adjusting for price increases. This represents an economic growth of 2.4% over 2013, the highest rate of economic expansion since 2007. The BOP survey conducted in 2015 showed that the Cayman Islands received from abroad a total of $1.65 billion from the export of goods and services (mainly tourism, business and financial services), against a total payment of $1.57 billion.

This year, the surveys aim at collecting comparative information for 2015, to assist the government and the private sector in their policy-making and planning, as well as provide the global financial community with updated economic data on the country.

About 3 400 forms will be mailed or hand-delivered to local businesses, government entities and non-profit organisations.

The SNA survey is designed in accordance with the internationally accepted standards issued by the United Nations Statistical Commission.
The BOP survey is based on guidelines prescribed by the International Monetary Fund (IMF).

CIMA publishes investment digest for 2013

Friday, February 20th, 2015

The Cayman Islands Monetary Authority (CIMA) has published its latest investment digest.

However, this compendium of financial information is now more than a year old. While the regulator publishes much more up to date data on its site, the annual digest, which pulls together investment information, is usually one year behind. The data comes from over 8,700 funds which were regulated by CIMA in 2013.

The Statistical Trend Analysis Section compares the data with 2012 and says that the net asset value of regulated funds increased by 8% to USD 2.127 trillion.

It points to 11,379 regulated funds at 2013 year end and some 2,635 Master Funds, as compared with 1,891 in 2012. With 8,744 Registered, Administered and Licensed Funds, compared to 8,950 in 2012 net income in 2013 was still higher at USD 186 billion, compared to USD 138 billion in 2012. Net income for Master Funds also increased to USD 158 billion from USD 88 billion in 2012.

According to the digest, 37% of all funds that filed the FAR in 2013 had total assets of more than USD 100 million.

Cayman Captive Industry remains buoyant

Saturday, February 15th, 2014

The captive insurance sector of the Cayman Islands remains buoyant in a testing environment as 2013 maintained a steady pace following on from the phenomenal 2012 year of growth.

The Cayman Islands secured a combined total of 39 licencees issued during the year and an increase of 3% in the total number of licencees to 761. The Cayman Islands captive insurance industry earned USD 12.6 billion in total premiums and had USD 69.2 billion in total assets as at 31 December 2013.

The benefits provided by captive insurance companies is gaining global acceptance as evidenced by the increased licencees granted year on year. According to AM Best, there are currently over 5,700 captives globally compared to an estimated 1,000 in 1980, and there are more jurisdictions offering captive domiciliation.

It should be noted that different domiciles records statistics in a different way, making direct comparisons of size of their respective industries difficult to ascertain, but Cayman counts each of the parent companies, not the subsidiaries or individual ‘cells’.

According to the Cayman Islands Monetary Authority (CIMA), reported that they oversee 761 class B, C and D companies as at 31 December 2013, with 406 of those pure captives and 148 as segregated portfolio companies (SPCs) making Cayman one of the world’s largest captive insurance domiciles.

Rob Leadbetter, chairman of the Insurance Managers Association of Cayman (IMAC) commented: “We view the continued growth as a result of a collection of factors: the increased awareness of the benefits a captive can offer to companies looking to more efficiently manage their own risk; Cayman’s longstanding history in establishing and managing captives; and the steps IMAC has taken over the past year to better communicate with our stakeholders through a new brand, new website, improved social media strategies and an all-time record of 1400 in attendance to our annual Cayman Captive Forum.”

Insurance Managers Association of Cayman (IMAC) is a non-profit organisation run by the insurance managers of the Cayman Islands. Established in 1981, IMAC acts as both regulatory liaison with the Government of the Cayman Islands and promotes the Cayman Islands as a domicile of choice for captive insurance companies. It hosts the world’s largest captive insurance conference, attracting over 1,400 captive managers, service providers and directors annually.

Cayman’s Trade in Services is the Sole Net Foreign Exchange Earner in 2012

Monday, December 23rd, 2013

The Cayman Islands’ Balance of Payments (Current Account) Report 2012 was released on December 23, 2013.

This report summarizes the jurisdiction’s financial and economic transactions on goods and services, as well as income and transfers with the rest of the world. The data provided in it is used by credit rating agencies, creditors and foreign investors as general indicators of the country’s ability to service its foreign debt.

In 2012, the current account balance of Cayman was in deficit amounting to CI$ 485.6 million. The deficit is traced to a great extent to the deficit arising from trade in goods that amounts to CI$ 603.4 million, followed by the deficit in primary income transactions amounting to CI$ 264.5 million, and the deficit in secondary income amounting to CI$ 146.9 million. The latter is comprised mainly of workers’ remittances abroad.

Offsetting these deficits was a significant amount of surplus arising from trade in services which reached CI$ 529.1 million in 2012. Financial services, travel and other business services including legal and accounting led the services sector in realizing the surplus account for the jurisdiction.