• Analysis and Studies
• Cayman Islands: a look at the market

Overview

In 2022, the Cayman Islands ranked as the 165th largest economy globally in terms of total exports and the 160th largest in terms of total imports. Despite its relatively small size, the Cayman Islands plays a notable role in the global trade of specialized goods, particularly in the maritime and aviation sectors.

Exports

The primary exports of the Cayman Islands include recreational boats ($233M), planes, helicopters, and spacecraft ($199M), other sea vessels ($163M), refined petroleum ($64.9M), and petroleum gas ($24.1M). These high-value goods are exported mainly to Malta ($218M), Norway ($163M), Seychelles ($121M), Grenada ($62.6M), and the United States ($40.2M). The concentration of exports in sectors like luxury yachts and aviation reflects the island's niche expertise in high-value, specialized industries.

Imports

The Cayman Islands relies heavily on imports to meet its domestic and industrial needs. The top imported goods include recreational boats ($679M), refined petroleum ($361M), diamonds ($70.8M), cars ($64.9M), and passenger and cargo ships ($54.8M). The main suppliers are the United States ($1.04B), Italy ($411M), Turkey ($150M), Germany ($135M), and Switzerland ($89.2M). This reliance underscores the Cayman Islands’ focus on importing luxury items and industrial goods, aligning with its affluent population and maritime infrastructure.

Location

The Cayman Islands’ geographical location enhances its significance in regional and international trade. By land, it borders countries such as Brazil, Ecuador, Panama, Peru, and Venezuela, while by sea, it connects with Colombia, Cuba, Honduras, and Jamaica. This strategic positioning strengthens its role as a hub for maritime and aviation activities, facilitating trade routes across the Americas and beyond.

Argumentation

The Cayman Islands’ economic profile reflects a distinct specialization in high-value exports and luxury imports. Its focus on industries such as maritime and aviation equipment demonstrates the island’s alignment with niche, high-margin markets. At the same time, its dependence on imports highlights the limitations of a small domestic production base and the need for external resources to sustain its economy. Its location amplifies its potential as a trade and logistics hub, making it a vital node in the regional and global supply chain.

Export Opportunities by Relatedness

According to the Relatedness Index, the Cayman Islands has significant potential to diversify its export portfolio by focusing on products closely aligned with its existing capabilities. The top opportunities for expansion include:

1. Hard Liquor (Relatedness: 0.024)
2. Crude Petroleum (Relatedness: 0.023)
3. Scrap Aluminium (Relatedness: 0.022)
4. Soybeans (Relatedness: 0.021)
5. Scrap Copper (Relatedness: 0.021)

The Relatedness Index evaluates how closely a product aligns with a country’s current export strengths by measuring the distance between its existing exports and potential new ones. This metric helps identify products that require similar skills, resources, or infrastructure to those already established in the Cayman Islands' economy.

Notably, the listed products are those in which the Cayman Islands has yet to develop a specialization. By targeting these opportunities, the country could effectively diversify its exports, enhance economic resilience, and broaden its engagement in global trade.

Source: https://oec.world/