Cayman Islands Will Face More Difficult Policymaking Environment After April 2021 Snap Election

• A more fragmented Parliament following the April 14 snap election in the Cayman Islands will limit policymaking over the coming quarters, particularly as no legislator has been able to form a governing coalition.
• As a result, Fitch Solutions has revised the country’s Short-Term Political Risk Index score down to 68.1 out of 100, from 69.8 previously. This reflects the agency’s weaker assessment of the government's 'policymaking environment' due to the potential for a fragile coalition and gridlock, as well as greater risks to policy continuity.
• While the next Caymanian government is unlikely to deviate from the current policy direction, the legislature's granting of greater autonomy as a British Overseas Territory in December 2020 will allow for more policymaking discretion.

(Source: Fitch Solutions)