Fuel prices push up value of imports
(CNS): The country’s economic experts say that Cayman’s imports grew in value by over 8% in the first quarter of this year. People importedCI$184.6 million worth of stuff into Cayman but the bulk of the rise came from the importation of petroleum products, including mineral fuels and lubricants, which rose by 19.8% to CI$42.3 million, compared to $35.3 million for the corresponding period in 2011. Imports of non-petroleum products grew by 5.5% to total of CI$142.3 million, which included a food and beverage increase of 10.8%. The ESO stated in its bulletin that the increase in the value of imports was largely a result of continued increases in fuel prices.
Despite the comments from the ESO about the reason for the increase in the value of imports into the country, the premier believed it was a positive development. “This growth is an indication of the continuing recovery of the local economy from 2011,” McKeeva Bush, who is also the minister of finance, said.
Although the United States remained the main source of goods for Cayman, there was a 100% rise in the imports from Jamaica, United Kingdom, Panama and Mexico. However, a fall in the importation of watches led to a decrease in imports from Switzerland.
The value of transport equipment and parts was higher by 24.2% while in contrast, capital goods imports fell by 10%.
Meanwhile, as Cayman spent more money bringing things in, a drop in food sales overseas lead to a decrease inlocal exports in the first three months of this year by 42.6%, to CI$2.9 million.
This represented a visible trade deficit exports minus imports in the first quarter 2012 which increased by 6.9%, some CI$16.5 million, to CI$181.7 million compared to the CI$165.2 million recorded in the first quarter of 2011.
See full quarterly bulletin below.
Category: Local News
The headline is incorrect. It should read
"Fuel prices push up cost of imports".
A small but important distiction.
Ask the economics dude at UCCI how Cayman is able to afford a quarterly trade deficit of $165,000,000 now rising to $185,000,000. That annualizes out to $750,000,000 by the way. In contrast Cayman apparently exports only $2,000,000. I guess services don't count, or ECO doesn't have access to any numbers on the sale of services since no duty is owed. No matter, the answer to the question is expats and other foreigners.
These statistics are pretty meaningless and are an attempt at spin by the ESO. They should be using the word cost instead of value. Saying the value increased makes it sound like a good thing. In reality all that is happening is that everything we are bringing in costs more.
These statistics should be adjusted into real terms before the premier can talk of a growing economy. That means the two years should be compared after adjusting for price increases. That is the only way to see how much actual growth has occurred. Why should reality get in the way of a good soundbite.