In 2020 the Cayman Islands economy contracted by more than 7%. From March, the Government kept borders closed for travellers1 and imposed restrictions on non-essential activities to contain the spread of COVID-19. Consequently, most sectors of the economy experienced double-digit declines.

The year 2020 represented a rupture for government finances as the overall fiscal balance swung to a deficit for the first time since 2012. All major revenue categories recorded significant decreases and current expenditure increased amid rising health-related and social spending.