Recent data from the Economic Commission for Latin America and the Caribbean shows that Cayman’s economy is growing more quickly, with lower debt levels, than most of its neighbours.
On 16 Dec. the commission, which is a UN body, published its ‘Preliminary Overview of the Economies of Latin America and the Caribbean 2025’. The comprehensive report doesn’t mention Cayman yet it paints a detailed picture of other English-speaking, Caribbean island economies that allows for useful comparisons.
Economic growth
Data from both CIBC Caribbean and the Economics and Statistics Office estimate Cayman’s 2025 economic growth at 2.6%, which is higher than the three-largest English-speaking Caribbean island economies. The commission calculates that Jamaica’s economy grew by 1.5% in 2025, Trinidad and Tobago expanded by 1.3% and the Bahamas by 2.1%.
There are some outliers, such as Barbados, which grew at 2.9%, but in general Cayman grew faster than other major English-speaking Caribbean islands’ economies in 2025. The commission estimated the average growth for the region – on GDP-weighted basis –at 1.9% for 2025, which was below the global economy’s 3.2% expansion during the same year.
Looking ahead to the full year for 2026, CIBC Caribbean believes Cayman’s growth will slow to 2.2%. The commission also sees lower regional growth in 2026, with Barbados forecast to expand at 2.1%, the Bahamas at 2.0%, Jamaica at 1.4% and Trinidad and Tobago at 0.9%. Those lower numbers will bring down the commission’s forecast for the English-speaking Caribbean to 1.8%, while the rate of global growth is expected to fall to 3.0%.
Debt drags down growth in the Caribbean
One factor weighing down on the English-speaking Caribbean economies is their heavy debt loads. Public debt in the Caribbean stood at an average of 68% of GDP in 2025. “Fiscal space remained limited amid persistent deficits and declining but still-high debt levels,” the report said.
In simple terms, repaying international creditors means making tough decisions in the local economy. “Fiscal balances in the Caribbean are expected to worsen,” said the report.
“Although some countries managed to improve their fiscal balances by increasing tax revenue or curbing public expenditures, others faced additional spending pressures linked to greater interest payments, especially on debt denominated in foreign currency or owed to a large share of foreign creditors, which represents a source of macroeconomic vulnerability.”
In comparison, Cayman’s public debt stood at just 6.9% of GDP in 2025, with CIBC predicting the same for 2026. That lighter debt profile is a competitive advantage for the Cayman Islands. But unlike other Caribbean island economies, it is unable to raise revenues through direct taxation and instead must resort to increasing fees or cutting costs.