May_BVC

30 31 MINISTRY OF FINANCE & ECONOMIC DEVELOPMENT - CAYMAN ISLANDS report for 2017 shows a rise in world prices by about 1.9 percent, driven by the recovery in the housing rental market from a persistent downward trend following the 2008/09 finan- cial crisis and recession. Continued population growth is driving a strong need for housing, as well. Growth in the local economic ser- vices sector led to a reduction in the deficit of the current account balance of payments in 2015/16. The deficit improved from 39.4 percent GDP in 2014 to 26.2 percent in 2017. “Unemployment is another bright spot. Robust growth in the domestic economy has spurred an increase in demand for labor. Total employment has improved on average by 2.8 percent in the past three years. At the end of 2017, total employment stood at 40,856 per- sons. Large employers (more than 50 employ- ees) and microbusinesses (one to five employees) accounted for about 60 percent of the 2017 growth. But despite the in- crease in the number of jobs provided, we experi- enced a faster pace of growth in demand for jobs. Consequently, the overall unemployment rate was 4.9 percent in 2017.” “The majority of jobs are in construction, with a significant number in financial ser- vices and tourism. Those are the backbone of the economy, and there is quite a shortage of skilled professional labor to service all the jobs, particularly in financial services.We do have a very large expatriate population; probably 40 to 50 percent of the workforce in Cayman is comprised of people who are here on a work visa or permit. Cayman is quite simply unable to develop local talent quick enough in the numbers needed. So, we rely on outside expats to fill the positions.” BVM: What is the primary role of your Ministry? Minister McTaggart: “The Min- istry of Finance & Economic Development implements and maintains the macroeconom- ic and budgetary policies of the Caymans, as a whole.We are the finan- cial advisor on government finances and all matters relating to the financial affairs of the government and the country. In the promo- tion of transparency, accountability, and fiscal responsibility, the powers and duties of the Ministry are prescribed as the Public Man- agement and Finance Law (PMFL). That law charges us with overseeing the management of finances of the core government and the entire public sector. “We also advise the cabinet on the bud- get process, ensuring that forecast financial statements are prepared, and bring to the legislative assembly (local parliament) the tension and divergence between the fiscal policies of the government and the principles of responsible financial management which we are subjected to by law. Also, ensuring that the reporting requirements for the gov- ernment are complied with on a timely basis. Finally, prescribing the policies to be applied in preparation of financial information. That’s how we view our primarily role – as financial advisors and managers of the public purse.” BVM: What do you feel is the key reason for the strength and growth of the Cayman Islands’ economy? Minister McTaggart: “Fiscal prudence.We have seen significant improvement in the government’s financial performance since the