This was the assessment of the Cayman Islands' economic outlook given by Financial Secretary Keith Jefferson during a debate on a government motion seeking the Legislative Assembly’s acceptance of the Strategic Policy Statement (SPS) for 2006/2007.

Citing economic indicators, Mr Jefferson predicted a return to "normal" pre-Ivan economic conditions in the three years covered by the SPS document for 2006/7, and he indicated that the reconstruction effort has fed through into strong growth in gross domestic product for 2005.

According to estimates by the Economic and Statistics Office, the Cayman Islands' GDP expanded by 3.7 percent during the 2004/5 fiscal year. For the 2005/6 financial year ending on 30 June 2006, growth of 5.4 percent is being predicted.

In spite of Ivan, most sectors of the jurisdiction's financial services industry, including mutual fund, insurance company and new company registrations, stock market capitalization and listings and captive insurance premiums continued to grow through the whole of 2004 and in the first three quarters of 2005. Only bank and trust licences have seen a decline, the Financial Secretary noted.

However, the second pillar of the Cayman economy, tourism, has not fared so well, as visitor arrivals decreased by 7.5% in the 2004 calendar year compared to the previous year, and there has been no sign of improvement in visitor numbers during 2005. Nonethless, the number of air arrivals registered an increase in the second and third quarters, and total arrivals are expected to pick up once hotel capacity returns to pre-Ivan levels, Mr Jefferson stated.

The economy is predicted by the ESO to grow by 3.6% in 2006/7 fiscal year and by 3% in 2007/8 and 2008/9.