Fears Raised Over Cayman Economy

Caymannetnews

10 September 2001

This story is reproduced by kind permission of Cayman Net News at: http://www.caymannetnews.com

That the country was in a recession for some while is known to Caymanians, but what is emerging now ­ according to informed sources is that there are noticeable reductions in the performances of areas from which government has been traditionally getting its revenue, and it is banking on the same sources to finance this year's deficit.

This has led to talk that government is struggling to meet its month-to-month commitments on serious overheads such as public servants' salaries.

According to information coming to Cayman Net News, the figures on entry of goods are down and continue to drop at what is described as an alarming rate.

The story on the real estate front is no better with what is seen by some as a near halt to house sales. In fact one person who contracts his collection services to the commercial banks has told Cayman Net News that the reverse is happening in home sales as he is being asked to enforce an increasing number of repossession orders.

Cases of rental of office space are on the decrease and some suites which were completed over a year ago are remaining empty.

A sure sign that construction is down is the number of migrant labourers in this field who have left the country owing to being laid off by contractors. This creates the chain-effect downturn in business on suppliers of consumer items as the departing building employees take with them a sizeable amount of the purchasing power within the country.

The roadside is literally littered with makeshift car marts with vehicles sporting the 'For Sale' and 'For Sale Negotiable' signs.
Residents are becoming so used to the curb being cluttered with cars of departing employees that these areas may appear strange whenever or if ever ­ those vehicles leave what we have now come to know as used car lots, while established new car dealers are flooded with their unsold 2001 vehicles, and fretting what's their next move for the 2002 models scheduled to arrive in a couple of months.

There is no news coming of any meaningful increase in visitor arrivals by both sea or air. The resulting absence of the tourist dollar makes for a double whammy on merchants already struggling under the strain brought on by the exodus of the migrant workforce.

Restaurateurs, taxi operators and innkeepers are suffering through low business. These factors denoting sluggish commerce rebound on the public treasury which is dependent on levies from the various business transactions to keep the wheels of administration turning.

Many small, medium and large business operators who conduct business with government are also complaining that their cheques are long in coming. With the lack of cash flow from the Treasury, these lags in payment are severely affecting their liquidity.

The day-to-day discussion among the Islands' business community is that there is a desperate need for the present Government Administration to take whatever steps and advice are necessary to stimulate the fading economy ­ before it is too late.f/font>