Cayman Islands profile

Demography and Health

The Cayman Islands are a very small population center, with about 74,457 people as of 2024, placing it among the world’s least populous territories. A positive, though modest, net migration of 896 people in 2024 suggests the territory continues to attract residents, likely drawn by the high standard of living and employment opportunities in its financial services and service-oriented economy. Natural increase remains healthy but modest: a crude birth rate of 11.8 per 1,000 people in 2023 and a crude death rate of 4.8 per 1,000 indicate a steady but not explosive growth in population. Life expectancy at birth sits at 80.4 years (2023), signaling strong health outcomes and overall well-being relative to many comparators. Taken together, these demography and health metrics reflect an affluent, small society with a stable population dynamic and a health system capable of supporting a high standard of living for its residents.

Economy

The Cayman Islands exhibit a very high standard of living by international comparison, with GDP per capita at current prices around 97,750 USD in 2023 (ranking among the top economies) and GDP per capita at PPP around 86,689 international USD, underscoring a wealthier economy even after adjusting for price level differences. A standout feature is the exceptionally large inflow of foreign direct investment relative to GDP, at 95.1% of GDP in 2023, ranking second globally. This underscores the territory’s role as a premier destination for international capital and financial services, reflecting a business-friendly environment and a highly open external sector. The economy also maintains a robust current account position, though the balance stands at a deficit of about 9.98% of GDP in 2023, suggesting a reliance on imported goods and services and potentially reflecting the economy’s structure around services, capital flows, and tourism-related demand. High-technology exports, while present (about 6.97 million USD in 2023), are relatively modest as a share of economy, indicating that the Cayman Islands’ innovation and production footprint remains small-scale and concentrated in services rather than manufacturing. Overall, the economy is characterized by high income, substantial foreign investment, a service-dominated mix, and a strong governance framework that supports continued openness to global capital and services.

Trade and Investment

Trade and investment dynamics in the Cayman Islands are heavily shaped by its offshore financial services model and favorable investment climate. The exceptionally high net inflows of foreign direct investment—nearly 95% of GDP in 2023—signal an economy deeply integrated with global capital markets and reliant on international business activity for growth and employment. This level of investment inflow supports sophisticated financial services, professional services, and related sectors that contribute to the territory’s high GDP per capita. Despite the large scale of FDI, high-technology exports remain a relatively small share of the economy (6.97 million USD in 2023, ranking 116th), pointing to a specialization in financial services and related non-manufacturing activities rather than large-scale tech manufacturing. The current account deficit of approximately 10% of GDP in 2023 suggests that imports (including capital goods, consumer goods, and services) outpaced exports, but the abundant FDI and capital inflows help fund the external position. In sum, Cayman Islands’ trade and investment profile is defined by open financial services, substantial foreign capital, and a lean export base beyond services, offering resilience through diversification opportunities in technology-enabled services and sustainable finance.

Governance and Institutions

Governance indicators for the Cayman Islands reflect a strong, stability-oriented institutional environment. Political stability and absence of violence/terrorism register at 1.63 in 2023, the highest possible standing in the available scale, signaling near-ideal political calm and predictable policy environments. Government effectiveness scores are robust at 1.24, ranking 24th, indicating capable public administration and service delivery. Regulatory quality is also solid at 1.07 (rank 33), suggesting that policies governing markets, businesses, and financial sectors are generally well designed and implemented. The rule of law sits at 0.722 (rank 45), indicating a reasonably reliable legal framework, though not at the very top of the global scale. Control of corruption stands at 0.438 (rank 63), implying some vulnerabilities to corruption that are not uncommon in small, high-velocity financial centers. Taken together, these indicators show a governance system that is stable, administratively capable, and supportive of economic activity, while also highlighting areas where governance reforms could further strengthen integrity and transparency in a small, highly open economy.

Infrastructure and Technology

Infrastructure and technology in the Cayman Islands align with a high-income, service-oriented economy. The population size and affluence enable sophisticated financial and professional services infrastructure, underpinned by effective governance and stable policy frameworks. Notably, the territory records zero percent renewable energy consumption of total final energy consumption as of 2022, indicating a heavy reliance on imported energy and likely fossil fuel sources. This energy profile implies exposure to fossil fuel price volatility and a potential policy imperative to diversify energy supply toward renewables. The presence of foreign direct investment and a high level of per-capita income support the deployment of technology-enabled services and digital infrastructure, while high-technology exports—at roughly 6.97 million USD in 2023—signal targeted involvement in advanced sectors, albeit at a modest scale relative to the size of the economy. Life expectancy of 80.4 years complements a skilled workforce and mature infrastructure, yet the limited renewable energy share underscores a need for strategic technology investments to modernize energy and transport systems and bolster resilience against climate and energy price shocks.

Environment and Sustainability

Environment and sustainability considerations for the Cayman Islands reveal a trade-off between wealth and energy intensity. Total greenhouse gas emissions per capita (excluding LULUCF) are 5.34 t CO2e per person in 2023, a figure that reflects the territory’s energy consumption and transport patterns typical of high-income, service-based economies. Importantly, renewable energy contribution remains at 0% of total final energy consumption in 2022, highlighting a substantial sustainability challenge: the island remains heavily reliant on imported fossil fuels, which constrains decarbonization efforts and makes the economy vulnerable to energy price shocks and global energy market fluctuations. Strengthening renewable energy capacity, diversifying energy sources, and investing in energy efficiency would be critical steps toward reducing emissions intensity and reinforcing environmental resilience. Given its small size and geographic exposure, the Cayman Islands also face climate-related risks such as sea-level rise and extreme weather, reinforcing the case for integrating sustainability into long-term planning—balancing continued prosperity with environmental stewardship and resilience.