Economic growth in the Cayman Islands accelerated in 2018. Growth was hinged mainly on record tourism arrivals, and financial services, which performed well despite ongoing challenges. The construction sector contributed significantly to economic growth, with a number of hotel and public infrastructure projects under way.

Pending regulatory changes could adversely affect the operating environment of the financial services industry. The risks to the industry from a rapidly changing international regulatory environment were once again underlined by newly-adopted economic substance legislation1. Recently, the United Kingdom (UK) deferred the requirement to publish beneficial ownership registries for international business companies.