Policy Continuity, High Household Incomes Will Bolster Political Stability In The Cayman Islands

• The political environment in the Cayman Islands will remain broadly stable over the next decade as high standards of living bolster social stability. 
• While the April 2021 election produced a new government led by independent MPs, sweeping the centre-left People's Progressive Movement (PPM) from office, it is expected that the ruling coalition will maintain pro-business policies, with the regulatory environment supported by strong constitutional institutions. 
• Additionally, the Cayman Islands will continue to rank among the top Caribbean markets in terms of social stability, even as the COVID-19 pandemic caused a severe economic downturn in 2020. The Cayman Islands has low levels of unemployment and high income levels, which will reduce the likelihood of public unrest over the next 10 years. 
• Considering this, Fitch Solutions has maintained its Long-Term Political Risk Index score of 74.7 out of 100 for the Cayman Islands, which remains well above the Caribbean regional average and above Jamaica’s score of 63.9. At its present score of 74.7, the island is ranked 4^th in the Caribbean.

(Source: Fitch Solutions)