Fuel prices push up value of imports

(CNS): The country’s economic experts say that Cayman’s imports grew in value by over 8% in the first quarter of this year. People imported CI$184.6 million worth of stuff into Cayman but the bulk of the rise came from the importation of petroleum products, including mineral fuels and lubricants, which rose by 19.8% to CI$42.3 million, compared to $35.3 million for the corresponding period in 2011.  Imports of non-petroleum products grew by 5.5% to total of CI$142.3 million, which included a food and beverage increase of 10.8%. The ESO stated in its bulletin that the increase in the value of imports was largely a result of continued increases in fuel prices.

Despite the comments from the ESO about the reason for the increase in the value of imports into the country, the premier believed it was a positive development. “This growth is an indication of the continuing recovery of the local economy from 2011,” McKeeva Bush, who is also the minister of finance, said.

Although the United States remained the main source of goods for Cayman, there was a 100% rise in the imports from Jamaica, United Kingdom, Panama and Mexico. However, a fall in the importation of watches led to a decrease in imports from Switzerland.

The value of transport equipment and parts was higher by 24.2% while in contrast, capital goods imports fell by 10%.

Meanwhile, as Cayman spent more money bringing things in, a drop in food sales overseas lead to a decrease in local exports in the first three months of this year by 42.6%, to CI$2.9 million.

This represented a visible trade deficit exports minus imports in the first quarter 2012 which increased by 6.9%, some CI$16.5 million, to CI$181.7 million compared to the CI$165.2 million recorded in the first quarter of 2011.

See full quarterly bulletin below.