View source for Economy of the Cayman Islands

{{Short description|none}}
{{Use dmy dates|date=September 2020}}
{{Use British English|date=July 2015}}
{{Infobox economy
| country    = Cayman Islands
| image      = File:George Town, Cayman Islands (3887384779).jpg
| image_size = 
| caption    = 
| currency   = [[Cayman Islands dollar]] (KYD)
| fixed exchange = 1.00 KYD = 1.20 [[United States dollar|USD]]
| year       = 1 April – 31 March
| group = {{plainlist|
*[[Developed country|Developed/Advanced]]<ref>{{cite web |url=https://www.imf.org/external/pubs/ft/weo/2019/01/weodata/weoselco.aspx?g=110&sg=All+countries+%2f+Advanced+economies |title=World Economic Outlook Database, April 2019 |publisher=[[International Monetary Fund]] |website=IMF.org |access-date=29 September 2019}}</ref>
*[[World Bank high-income economy|High-income economy]]<ref>{{cite web |url=https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |title=World Bank Country and Lending Groups |publisher=[[World Bank]] |website=datahelpdesk.worldbank.org |access-date=29 September 2019}}</ref>}}
| population = {{increase}} 84,738<ref>{{cite web | url=https://www.eso.ky/UserFiles/page_docums/files/uploads/the_cayman_islands_labour_force_survey_r-14.pdf| title=Cayman's population grows by 10.5% in less than a year | date=September 2022 }}</ref>
| gdp        = {{increase}} $7.139 billion (2023 est., nominal)<br />$2.507 billion (2021, PPP)<ref name="datacommons.org">{{cite web | url=https://datacommons.org/place/country/CYM?mprop=amount&popt=EconomicActivity&cpv=activitySource%2CGrossDomesticProduction&hl=en | title=Cayman Islands - Place Explorer - Data Commons }}</ref>
| gdp rank   = 161st (nominal)<br />191st (PPP)
| growth     = 4.0% (2023)<ref name="datacommons.org"/>
| per capita = {{increase}} $109,684 (2023)<ref name="datacommons.org"/>
| sectors    = agriculture: 0.3%<br />industry: 28.2%<br />services: 71.5% (2014)
| components = 
| inflation  = 1% (2014)
| bankrate   = 
| poverty    = 1.9% (2009) <ref>{{cite book |title=Health in the Americas: regional outlook and country profiles |date=2012 |publisher=PAHO |location=Washington, DC |isbn=978-92-75-11691-3 |page=89 |edition=2012 |url=https://hia.paho.org/sites/default/files/2021-05/hia-2012-en.pdf#page=93 |access-date=7 August 2025}}</ref>
| gini       = {{decreasePositive}} 0.3995 (2010)<ref>{{cite web|url=http://www.cepal.org/portofspain/noticias/paginas/0/40340/42_slc_cayman_islands_nalc_report_-_vol_iv_-_statistical_report.pdf |archive-url=https://ghostarchive.org/archive/20221009/http://www.cepal.org/portofspain/noticias/paginas/0/40340/42_slc_cayman_islands_nalc_report_-_vol_iv_-_statistical_report.pdf |archive-date=2022-10-09 |url-status=live|title=Statistical Report|page= 22|website=cepal.org}}</ref>
| hdi        = {{increase}} 0.984 (2022)<ref>{{cite book|url=https://books.google.com/books?id=hGAiCwAAQBAJ&pg=PA62|title=Quality of Life, Balance of Power, and Nuclear Weapons (2015) |page= 63|isbn=9781628941289 |last1=Avakov |first1=Alexander V. |date=April 2015 |publisher=Algora }}</ref>
| labor      = {{increase}} 60,513 (2023)<ref name="caymannewsservice.com">{{cite web | url=https://www.eso.ky/storage/page_docums/uploadFilePdf/801/The%20Cayman%20Islands%20Labour%20Force%20Survey%20Report%20Fall%202023%20Final.pdf| title=2023 Labour Force Survey| date=25 February 2022 }}</ref>
| occupations = Agriculture: 1.9%<br />Manual Industry: 19.1%<br />Finance, Law and Tourism: 79%
| unemployment = {{decreasepositive}} 2.1% (2022)<ref name="caymannewsservice.com"/>
| average gross salary = 
| gross median = 
| average net salary = 
| net median = 
| industries = 
| edbr       = 
| exports    = $15.2 million (2014 est.)
| export-goods = turtle products, manufactured consumer goods
| export-partners = 
| imports    = $705.3 million (2014 est.)
| import-goods = foodstuffs, manufactured goods, fuels
| import-partners = 
| FDI        = 
| current account = 
| gross external debt = 
| NIIP       = 
| debt       = 
| deficit    = 
| revenue    = 
| expenses   = 
| aid        = 
| credit     = 
| reserves   = 
| spelling   = Oxford or US spells 'z', US '-or'; 's', '-our' spelling by default
}}
The '''economy of the Cayman Islands''', a [[British overseas territory]] located in the western [[Caribbean Sea]], is mainly fueled by the [[tourism|tourism sector]] and by the [[Financial services|financial services sector]], together representing 50–60 percent of the country's [[gross domestic product]] (GDP).<ref name="USDep" /> The [[Cayman Islands Investment Bureau]], a [[government agency]], has been established with the mandate of promoting investment and economic development in the territory. Because of the territory's strong economy and it being a popular banking destination for wealthy individuals and businesses, it is often dubbed the "financial capital" of the [[Caribbean]].<ref>[http://www.investcayman.ky Cayman Islands Investment Bureau] {{Webarchive|url=https://web.archive.org/web/20060615060521/http://www.investcayman.ky/ |date=15 June 2006 }}.</ref> The Cayman Islands enjoys the strongest and one of the most stable economies in the Caribbean. 

The emergence of what is now considered the [[Cayman Islands]]' "twin pillars of economic development" ([[Tourism in the Cayman Islands|tourism]] and [[international finance]]) started in the 1950s with the introduction of modern [[transportation]] and [[telecommunications]].<ref name="USDep">[https://2009-2017.state.gov/r/pa/ei/bgn/5286.htm Background Note: Cayman Islands]. Bureau of European and Eurasian Affairs, February 2008. US Department of State. Retrieved 11 September 2008.</ref>

==History==

From the earliest settlement of the [[Cayman Islands]], economic activity was hindered by isolation and a limited natural resource base. The harvesting of [[sea turtle]]s to resupply passing sailing ships was the first major economic activity on the islands, but local stocks were depleted by the 1790s. [[Agriculture]], while sufficient to support the small early settler population, has always been limited by the scarcity of arable land. [[Fishing]], [[shipbuilding]], and [[cotton]] production boosted the [[economy]] during the early days of settlement.  In addition, settlers scavenged shipwreck remains from the surrounding coral reefs.

The boom in the Cayman Islands' international finance industry can also be at least partly attributed to the [[British overseas territory]] having no [[direct taxation]].  A popular legend attributes the tax-free status to the heroic acts of the inhabitants during a maritime tragedy in 1794, often referred to as "Wreck of the Ten Sails".<ref>[http://www.caymanchamber.ky/visitor/poi.htm#wreck Points of Interest: The Wreck of the Ten Sails] {{Webarchive|url=https://web.archive.org/web/20081202011824/http://www.caymanchamber.ky/visitor/poi.htm#wreck |date=2 December 2008 }}. Cayman Islands Chamber of Commerce, 2003. Retrieved 11 September 2008.</ref> The wreck involved nine British merchant vessels and their naval escort, the [[frigate]] HMS Convert, that ran aground on the reefs off [[Grand Cayman]]. Due to the rescue efforts by the Caymanians using canoes, the loss of life was limited to eight.<ref>[http://www.nationaltrust.org.ky/info/eelight.html The East End Lighthouse Park] {{Webarchive|url=https://web.archive.org/web/20040409103339/http://www.nationaltrust.org.ky/info/eelight.html |date=9 April 2004 }}. National Trust of the Cayman Islands, 8 June 2006. Retrieved 11 September 2008.</ref> However, records from the colonial era indicate that Cayman Islands, then a [[Dependent territory|dependency]] of [[Jamaica]], was not tax-exempt during the period that followed. In 1803, the inhabitants signed a petition addressed to the [[governors of Jamaica|Jamaican governor]] asking him to grant them a tax exemption from the "Transient Tax on Wreck Goods".<ref>Smith, Roger C. (2000). ''The Maritime Heritage of the Cayman Islands''. University Press of Florida. {{ISBN|0-8130-1773-4}}, p. 172.</ref>

Sir Vassel Johnson, the second Caymanian to be knighted, was a pioneer of Cayman's financial services industry. Cayman Islands Past Governor Stuart Jack said. "As one of the architects of modern Cayman, especially the financial industry, Sir Vassel guided the steady growth of these Islands as the first financial secretary. His remarkable vision set the foundation for the prosperity and economic stability of these islands. Without his input, Cayman might well have remained the islands that time forgot."<ref>{{cite web |last1=Jack |first1=Stuart |title=Governor's Tribute to Sir Vassel |url=http://www.gov.ky/portal/page/portal/cighome/pressroom/archive/200811/governorstributetosirvassel |website=Cayman Islands Government |access-date=16 June 2018 |archive-url=https://web.archive.org/web/20180616115203/http://www.gov.ky/portal/page/portal/cighome/pressroom/archive/200811/governorstributetosirvassel |archive-date=16 June 2018}}</ref>

==International finance==

The Cayman Islands' tax-free status has attracted numerous banks and other companies to its shores. More than 92,000 companies were registered in the Cayman Islands as of 2014,<ref>{{cite web |title=Companies |url=http://www.ciregistry.gov.ky/portal/page/portal/reghome/companies |website=General Registry Caymen Islands |access-date=25 June 2018 |date=3 February 2014 |archive-date=25 June 2018 |archive-url=https://web.archive.org/web/20180625161206/http://www.ciregistry.gov.ky/portal/page/portal/reghome/companies |url-status=dead }}</ref> including almost 600 [[bank]]s and [[trust company|trust companies]], with banking assets exceeding $500 billion. Numerous large corporations are based in the Cayman Islands, including, for example, [[Semiconductor Manufacturing International Corporation]] (SMIC).  The [[Cayman Islands Stock Exchange]] was opened in 1997.

===Financial services industry===
[[File:Butterfield Bank in Georgetown, Grand Cayman.jpg|thumb|upright|[[Butterfield Bank]] in [[George Town, Cayman Islands|George Town]]]]

The Cayman Islands is a major international financial centre. The largest sectors are "[[banking]], [[hedge fund]] formation and investment, structured finance and securitisation, [[captive insurance]], and general corporate activities".<ref name="GAO">United States Government Accountability Office (2008). [http://www.gao.gov/new.items/d08778.pdf GAO Report to the Chairman and Ranking Member], Committee on Finance, U.S. Senate, p. 7.</ref> Regulation and supervision of the [[financial services]] industry is the responsibility of the [[Cayman Islands Monetary Authority]] (CIMA). Sir Vassel Johnson was a pioneer of Cayman's financial services industry.

Sir Vassel, who became the only Caymanian ever knighted in 1994, served as the Cayman Islands financial secretary from 1965 through 1982 and then as an Executive Council member from 1984 through 1988. In his government roles, Sir Vassel was a driving force in shaping the Cayman Islands financial services industry.<ref>{{Cite web |url=http://www.gov.ky/portal/page/portal/cighome/pressroom/archive/200811/governorstributetosirvassel |title=Governor's Tribute to Sir Vassel |access-date=25 June 2018 |archive-date=16 June 2018 |archive-url=https://web.archive.org/web/20180616115203/http://www.gov.ky/portal/page/portal/cighome/pressroom/archive/200811/governorstributetosirvassel |url-status=dead }}</ref>

The Cayman Islands is the fifth-largest banking centre in the world,<ref>[https://www.economist.com/special-report/2007/02/24/places-in-the-sun Places in the sun]. (24 February 2007). The Economist, no. 382 (8517 suppl.), 3–5.</ref> with $1.5 trillion in banking liabilities {{as of|lc=y|June 2007}}.<ref name="GAO"/> In March 2017 there were 158 banks, 11 of which were licensed to conduct banking activities with domestic (Cayman-based) and international clients, and the remaining 147 were licensed to operate on an international basis with only limited domestic activity.<ref>{{cite web|url=https://thebanks.eu/articles/banking-sector-of-the-Cayman-Islands|title=Banking Sector of the Cayman Islands|website=thebanks.eu|date=30 May 2016 }}</ref> Financial services generated KYD$1.2 billion of GDP in 2007 (55% of the total economy), 36% of all employment and 40% of all government revenue. In 2010, the country ranked fifth internationally in terms of value of liabilities booked and sixth in terms of assets booked. It has branches of 40 of the world's 50 largest banks. The Cayman Islands is the second largest [[captive insurance#Domicile|captive domicile]] (Bermuda is largest) in the world with more than 700 [[captive insurance|captives]], writing more than US$7.7 billion of premiums and with US$36.8 billion of assets under management.<ref>Cayman Islands Monetary Authority (11 July 2008), [http://www.cimoney.com.ky/section/regulatoryframework/sub/default.aspx?section=PD&id=666 Regulatory Framework: Statistics]. Retrieved 25 July 2008 from: {{webarchive |url=https://web.archive.org/web/20090718114432/http://www.cimoney.com.ky/section/regulatoryframework/sub/default.aspx?section=PD&id=666 |date=18 July 2009 }}</ref>

There are a number of service providers. These include global financial institutions including [[HSBC]], [[Deutsche Bank]], [[UBS]], and [[Goldman Sachs]]; over 80 administrators, leading accountancy practices (incl. the [[Big Four auditors]]), and offshore law practices including [[Maples & Calder]].<ref name="HedgeWeek">[http://www.hedgeweek.com/2005/10/01/bringing-caymans-mutual-funds-law-speed Bringing Cayman's Mutual Funds Law up to speed]. ''Hedge Week'' (1 October 2005).</ref> They also include wealth management such as [[Rothschild & Co|Rothschilds]] private banking and financial advice.<ref>{{cite web|url=http://privatebankingandtrust.rothschild.com/page.aspx?id=139|title=Rothschild – Wealth Management & Trust – Cayman Islands|publisher=nucleus.co.uk|url-status=dead|archive-url=https://web.archive.org/web/20160715044601/http://privatebankingandtrust.rothschild.com/page.aspx?id=139|archive-date=15 July 2016}}</ref>

Since the introduction of the [[Mutual fund|Mutual Funds]] Law in 1993, which has been copied by jurisdictions around the world,<!---the "copied" phrase needs to be broken out as a separate stand-alone sentence and justified with a ref and not be a throwaway phrase in the middle of another sentence---> the Cayman Islands has grown to be the world's leading offshore hedge fund jurisdiction.<ref name="HedgeWeek"/> In June 2008, it passed 10,000 hedge fund registrations, and over the year ending June 2008 CIMA reported a net growth rate of 12% for hedge funds.<ref>{{cite web |url=http://www.caycompass.com/cgi-bin/CFPnews.cgi?ID=1032423 |title=10,000–plus funds registered in CI |publisher=Caycompass.com |date=29 July 2008 |access-date=31 July 2011 |url-status=dead |archive-url=https://web.archive.org/web/20110728132304/http://www.caycompass.com/cgi-bin/CFPnews.cgi?ID=1032423 |archive-date=28 July 2011  }}</ref>

Starting in the mid-late 1990s, [[offshore financial centres]], such as the Cayman Islands, came under increasing pressure from the [[OECD]] for their allegedly harmful tax regimes, where the OECD wished to prevent low-tax regimes from having an advantage in the global marketplace. The OECD threatened to place the Cayman Islands and other [[financial centres]] on a "black list" and impose sanctions against them.<ref name="Rogoff">{{cite web|url=https://www.pbs.org/wgbh/pages/frontline/shows/tax/schemes/cayman.html |title=Haven or havoc? |publisher=Pbs.org |access-date=31 July 2011}}</ref> However, the Cayman Islands successfully avoided being placed on the OECD black list in 2000 by committing to regulatory reform to improve transparency and begin information exchange with OECD member countries about their citizens.<ref name="Rogoff"/>

In 2004, under pressure from the [[United Kingdom|UK]], the Cayman Islands agreed in principle to implement the [[European Union Savings Directive]] (EUSD), but only after securing some important benefits for the financial services industry in the Cayman Islands. As the Cayman Islands is not subject to [[European Union|EU]] laws, the implementation of the EUSD is by way of bilateral agreements between each EU member state and the Cayman Islands. The government of the Cayman Islands agreed on a model agreement, which set out how the EUSD would be implemented with the Cayman Islands.<ref>{{cite web |url=http://www.ask.bm/uploaded/Publication/641_File_5.pdf |title=Guide to the EU Savings Directive|access-date=31 July 2011 |url-status=dead |archive-url=https://web.archive.org/web/20110728190459/http://www.ask.bm/uploaded/Publication/641_File_5.pdf |archive-date=28 July 2011  }}</ref>

A report published by the [[International Monetary Fund]] (IMF), in March 2005, assessing supervision and regulation in the Cayman Islands' banking, insurance and securities industries, as well as its [[money laundering]] regime, recognised the jurisdiction's comprehensive regulatory and compliance frameworks. "An extensive program of legislative, rule and guideline development has introduced an increasingly effective system of regulation, both formalizing earlier practices and introducing enhanced procedures", noted IMF assessors. The report further stated that "the supervisory system benefits from a well-developed banking infrastructure with an internationally experienced and qualified workforce as well as experienced lawyers, accountants and auditors", adding that, "the overall compliance culture within Cayman is very strong, including the compliance culture related to AML (anti-money laundering) obligations".<ref>{{cite web|url=http://www.caymanfinance.gov.ky/portal/page?_pageid=1186,1549172&_dad=portal&_schema=PORTAL |archive-url=https://web.archive.org/web/20090205053506/http://www.caymanfinance.gov.ky/portal/page?_pageid=1186%2C1549172&_dad=portal&_schema=PORTAL |url-status=dead |archive-date= 5 February 2009 |title=Cayman Islands Financial Services |work=caymanfinance.gov.ky }}</ref><ref>[http://www.rhesq.com/Terrorism/Caymans%20in%20Perspective.pdf Money Laundering in the Cayman Islands: A Global Perspective], ''Cayman Financial Review'', Third Quarter, 2010</ref>

On 4 May 2009, the United States President, [[Barack Obama]], declared his intentions to curb the use of financial centres by multinational corporations. In his speech, he singled out the Cayman Islands as a tax shelter.<ref>{{cite web |author=The Crave |url=http://www.politicalcrave.com/2009/05/04/transcript-obama-preaches-hypocrisy-against-tax-havens-and-tax-loopholes/ |title=Transcript: Obama Preaches Against Tax Havens And Tax LoopHoles |publisher=Political Crave |date=22 October 2010 |access-date=31 July 2011 |url-status=dead |archive-url=https://web.archive.org/web/20110715103017/http://www.politicalcrave.com/2009/05/04/transcript-obama-preaches-hypocrisy-against-tax-havens-and-tax-loopholes/ |archive-date=15 July 2011  }}</ref> The next day, the Cayman Island Financial Services Association submitted an open letter to the president detailing the Cayman Islands' role in international finance and its value to the US financial system.<ref>{{cite web |url=http://news.prnewswire.com/DisplayReleaseContent.aspx?ACCT=104&STORY=/www/story/05-05-2009/0005019996&EDATE= |title=An Open Letter to President Obama From the Cayman Islands Financial Services Association |publisher=News.prnewswire.com |date=5 May 2009 |access-date=31 July 2011 |url-status=dead |archive-url=https://web.archive.org/web/20130626102618/http://news.prnewswire.com/DisplayReleaseContent.aspx?ACCT=104&STORY=%2Fwww%2Fstory%2F05-05-2009%2F0005019996&EDATE= |archive-date=26 June 2013  }}</ref>

The Cayman Islands was ranked as the world's second most significant tax haven on the [[Tax Justice Network]]'s "Financial Secrecy Index" from 2011, scoring slightly higher than [[Luxembourg]] and falling behind only [[Switzerland]].<ref>[https://web.archive.org/web/20130828000235/http://www.financialsecrecyindex.com/2011results.html Financial Secrecy Index 2011]. financialsecrecyindex.com</ref> In 2013, the Cayman Islands was ranked by the [[Financial Secrecy Index]] as the fourth safest tax haven in the world, behind [[Hong Kong]] but ahead of [[Singapore]]. In the first conviction of a non-Swiss financial institution for US tax evasion conspiracy, two Cayman Islands financial institutions pleaded guilty in Manhattan Federal Court in 2016 to conspiring to hide more than $130 million in Cayman Islands bank accounts. The companies admitted to helping US clients hide assets in offshore accounts, and agreed to produce account files of non-compliant US taxpayers.<ref>[http://www.caribbeannewsnow.com/headline-Cayman-financial-firms-plead-guilty-to-%24130-million-tax-conspiracy-29604.html "Cayman financial firms plead guilty to $130 million tax conspiracy"] {{Webarchive|url=https://web.archive.org/web/20171107004153/http://www.caribbeannewsnow.com/headline-Cayman-financial-firms-plead-guilty-to-%24130-million-tax-conspiracy-29604.html |date=7 November 2017 }}, ''Caribbean News Now'', 10 March 2016</ref>

====Foreign Account Tax Compliance Act====
On 30 June 2014, the tax jurisdiction of the Cayman Islands was deemed to have an inter-governmental agreement (IGA) with the United States of America with respect to the "[[Foreign Account Tax Compliance Act]]" of the United States of America.<ref name=treasury/>

The Model 1 Agreement recognizes:<ref name=treasury>[https://www.treasury.gov/resource-center/tax-policy/treaties/Documents/FINAL%20US%20-%20Cayman%20Islands%20-%20Cayman%20alternat.pdf Agreement between the Government of the Cayman Islands and the Government of the United States of America to Improve International Tax Compliance and to Implement FATCA]. US Treasury Tax Policy Treaties</ref>

* The [[Tax Information Exchange Agreement]] (TIEA) between the United States of America and The Cayman Islands which was signed in London, United Kingdom on 29 November 2013. Page 1 – Clause 2 of the FATCA Agreement.<ref name=treasury/>
* The Government of Great Britain and Northern Ireland provided a copy of the Letter of Entrustment which was sent to the Government of the Cayman Islands, to the Government of the United States of America "via diplomatic note of October 16, 2013".
* The Letter of Entrustment dated 20 October 2013, The Govt of Great Britain and Northern Ireland, authorized the Govt of the Cayman Islands to sign an agreement on information exchange to facilitate the Implementation of the Foreign Account Tax Compliance Act  – Page 1 – Clause 10.<ref name=treasury/>

On 26 March 2017, the US Treasury site disclosed that the Model 1 agreement and related agreement were "In Force" on 1 July 2014.

====Sanctions and Anti-Money Laundering Act====
Under the UK Sanctions and Anti-Money Laundering Act of 2018, beneficial ownership of companies in British overseas territories such as the Cayman Islands must be publicly registered for disclosure by 31 December 2020.<ref name=kmppvap>{{cite web| url = https://www.lawgazette.co.uk/law/overseas-territories-to-fight-public-register-demands/5066370.article| title = Overseas territories to fight public register demands {{!}} News {{!}} Law Gazette}}</ref> The Government of the Cayman Islands plans to challenge this law, arguing that it violates the Constitutional sovereignty granted to the islands.<ref name=kmppvap /> The British [[National Crime Agency]] said in September 2018 that the authorities in the Cayman Islands were not supplying information about the beneficial ownership of firms registered in the Cayman Islands.<ref>{{cite news |title=UK frustrated by Cayman Islands silence on money laundering |url=https://www.bbc.co.uk/news/uk-45525976 |access-date=15 September 2018 |work=BBC News |date=15 September 2018}}</ref>

==Tourism==
[[Tourism]] is also a mainstay, accounting for about 70% of GDP and 75% of foreign currency earnings.<ref>{{cite web|url=https://www.cia.gov/the-world-factbook/countries/cayman-islands/|title=The World Factbook – Central Intelligence Agency|website=www.cia.gov|date=22 March 2023 }}</ref> The tourist industry is aimed at the luxury market and caters mainly to visitors from [[North America]]. Unspoiled beaches, [[duty-free shop]]ping, [[scuba diving]], and deep-sea fishing draw almost a million visitors to the islands each year. Due to the well-developed tourist industry, many citizens work in service jobs in that sector.

==Diversification==
The Cayman Islands is seeking to diversify beyond its two traditional industries, and invest in health care and technology. [[Health City Cayman Islands]], opened in 2014, is a medical tourism hospital in East End, led by surgeon [[Devi Shetty]]. [[Cayman Enterprise City]] is a [[special economic zone]] that was opened in 2011 for technology, finance, and education investment. Cayman Sea Salt (producing gourmet sea salt) and Cayman Logwood products are now made in the Cayman Islands.

==Standard of living==

Because the islands cannot produce enough goods to support the population, about 100% of their food and consumer goods must be imported. In addition, the islands have few natural fresh water resources. [[Desalination]] of sea water is used to solve this.
Despite those challenges, the Caymanians enjoy one of the highest outputs per capita and one of the highest standards of living in the world.

Education is compulsory to the age of 16 and is free to all Caymanian children. Most schools follow the British educational system. Ten primary, one special education and two high schools ('junior high and senior high') are operated by the government, along with eight private high schools. In addition, there is a law school, a university-college and a medical school.

Poverty relief is provided by the [[Needs Assessment Unit]], a government agency established by the Poor Persons (Relief) Law in January 1964.

The Cayman Islands enjoys the lowest rates of poverty in the Caribbean, with the percentage of the population living below the poverty line being below 1%. {{Citation needed|date=August 2025|reason=This needs a recent source. PAHO reports 1.9% poverty rate in 2009.}}

== See also ==
{{Portal|Money}}
{{Col-begin}}
{{Col-2}}
* [[Economy of the Caribbean]]
* [[Cayman Islands dollar]]
* [[Cayman Islands Monetary Authority]]
* [[Cayman Islands Stock Exchange]]
* [[Central banks and currencies of the Caribbean]]
* [[List of countries by credit rating]]
{{Col-2}}
* [[List of Commonwealth of Nations countries by GDP]]
* [[List of Latin American and Caribbean countries by GDP growth]]
* [[List of Latin American and Caribbean countries by GDP (nominal)]]
* [[List of Latin American and Caribbean countries by GDP (PPP)]]
* [[List of countries by tax revenue as percentage of GDP]]
* [[List of countries by future gross government debt]]
* [[List of countries by leading trade partners]]
{{Col-end}}

==References==
{{reflist}}
{{CIA World Factbook|year=2006}}

{{Cayman Islands topics}}
{{Caricom}}
{{Caribbean in topic|Economy of}}
{{Americas topic|Economy of}}

{{DEFAULTSORT:Economy Of The Cayman Islands}}
[[Category:Economy of the Cayman Islands| ]]