Impact of Downturn revealed in Cayman Q2 Report
The Cayman Islands has recently announced statistics for economic activity as at Quarter 2 2009. The new statistics revealed further deterioration, which is the result of the global financial downturn.
According to the newly published data, the overall fiscal deficit widened to KY$ 80.8 million (which is USD 98.5 million) in the 1st half of 2009 as compared to KY$ 1.6 million for the same period a year ago, as total expenditure grew by 10.4% and revenues fell by 13.7%
Direct revenues, which totaled KY$ 260.9 million, fell by KY$ 32.1 million or 10.9% below receipts in the preceding year, while indirect revenue amounted to KY$ 22.9 million, which is the decrease of 35.9%. With the only exception which is fines, all revenue sources declined, most notably taxes from international trade and transactions (-15.7%) and taxes on domestic property (-50.9%).
Capital expenditure and net lending increased significantly by 24.7% over the period June 2008 through to June 2009. There was a 1.8% rise in current expenditure precipitated by strong growth in personnel costs, interest payments, subsidies, and transfer payments.
Personnel costs increased to KY$ 123.4 million, which is higher by 8.3%as compared with a year ago.
As regards new company registration, at Quarter 1 2009, total new company registrations were at 3 679, which is a record 46.2% decline as compared with Quarter 1 2008.