Developing the Cayman Islands’ Official Statistics ESO Strategic Plan : An Overview

Outline of Presentation A vision for Cayman’s official statistics Strategic goals in New official statistics: overview System of National Accounts Balance of Payments Challenges

Vision: Official statistics that are responsive to local needs & compliant to international standards Local needs of evidence-based decision-making: Public Management and Financial Law Business planning: sector and national Physical and HR planning: sector and national Socio-economic planning and resource programming International standards: United Nations Statistical Commission IMF General Data Dissemination Standards

Strategic Goals Upgrade Cayman’s official statistics Build-up in-house capacity Increase the local community’s ownership and use of official statistics

Upgrading Cayman’s Official Statistics

New CPI basket  Replaces the 14 year-old basket currently used for measuring changes in the cost of living New social statistics  Provide official poverty, education and other social statistics that can be used for designing social assistance programs Population and vital statistics  Records-based population projection program Census 2010  Most comprehensive source of socio-demographic data Upgrading Cayman’s Official Statistics

Upgrading Cayman’s Official Economic Statistics System of National Accounts (SNA): a comprehensive and systematic record of the value of all economic activities in the country; standard tool for economic growth measurement, monitoring and forecasting across countries and periods, and across economic sectors in a single period. developed jointly by the United Nations, the Commission of the European Communities, the International Monetary Fund, the Organisation for Economic Co-operation and Development, and the World Bank. launched in 1953 and has been adopted by almost all countries in the world, including the Caribbean (Cayman is one of the very few non- compliant countries)

Upgrading Cayman’s Economic Statistics: the SNA Example of an SNA Production Table: US Real GDP by Industry (US$ Billions) Industry Agriculture, forestry, fishing and hunting Mining Utilities Construction Manufacturing1,434.81,512.51,601.2 Wholesale and retail trade1,469.41,566.71,651.9 Transportation, information and warehousing Finance and insurance ,027.5 Real estate, rental and leasing1,491.41,578.41,731.1 Professional, management and business services1,346.41,458.81,564.6 Education, health care and social assistance ,035.0 Arts, entertainment, recreation, accommodation, and food services Other services, except government Federal, state and local government1,491.01,563.61,636.2 Gross Domestic Product11, , ,246.6 Source: Bureau of Economic Analysis, US Department of Commerce Comparative analysis of sector contribution or sector importance in the economy

Upgrading Cayman’s Economic Statistics: the SNA Comparative analysis of sector contribution or sector importance in the economy SNA Production Table: Bermuda

Upgrading Cayman’s Economic Statistics: the SNA Comparative analysis of Bermuda’s international business (off-shore sector) SAMPLE SNA REPORT: BERMUDA

Upgrading Cayman’s Economic Statistics: the SNA Classification of SNA Respondents in the Cayman Islands Goods Producing Sectors 1)Agriculture and FishingAgriculture and Fishing 2)ManufacturingManufacturing 3)Construction, Mining and QuarryingConstruction, Mining and Quarrying Services Sectors 1) Electricity and WaterElectricity and Water 2) Wholesale Trade, Retail Trade and Repair ServicesWholesale Trade, Retail Trade and Repair Services 3)Accommodation ServicesAccommodation Services 4)Restaurants, Bars and Night ClubsRestaurants, Bars and Night Clubs 5)Transport and Related ServicesTransport and Related Services 6)Communication ServicesCommunication Services 7)Financial Services- Intermediation and Development BankingFinancial Services- IntermediationDevelopment Banking 8)Mutual Funds, Securities Dealers and Holding CompaniesMutual Funds, Securities Dealers and Holding Companies 9)Life and General Insurance Companies and Pension FundsLife and General Insurance Companies and Pension Funds 10)Insurance Managers, Agents, Brokers and Loss AdjustersInsurance Managers, Agents, Brokers and Loss Adjusters 11)Realtors, Real Estate Agents and BrokersRealtors, Real Estate Agents and Brokers 12)Business Service (e.g. Legal, Accounting, Engineering, Management etc.)Business Service (e.g. Legal, Accounting, Engineering, Management etc.) 13)Software Development and Computer ServicesSoftware Development and Computer Services 14)Educational InstitutionsEducational Institutions 15)Hospital and other Medical ServicesHospital and other Medical Services 16)Private Non-Profit InstitutionsPrivate Non-Profit Institutions 17)Personal ServicesPersonal Services 18)Public Administration and Defense

Annual Business Survey: Source of SNA data

Upgrading Cayman’s economic statistics: Balance of Payments (BOP) A double entry system in which flows of international payments and receipts are recorded at a specific period of time. Comprises of 3 accounts: 1)Current Account records the outflow and inflow of merchandise trade, services, income and unilateral transfers; 2)Capital Account records all international capital transfers such as the following: foreign aid received by the government; transfer of goods and financial assets by migrants; sale/purchase of property overseas by residents (i.e. government, businesses and individuals). 3)Financial Account records all international monetary flows related to investment in businesses, bonds and stocks

Upgrading Cayman’s Economic Statistics: BOP 2006 Q1 2006Q2 2006Q3 A Sample BOP: Bermuda

Upgrading Cayman’s Official Economic Statistics: Challenges  Resistance to business surveys;  Lack of a “business records-keeping” culture;  Absence of an intra-government (public sector) data-sharing system that could alleviate the above issues and reduce “response burden;”  Need to coordinate data requirements with CIMA and other offices.