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Opinions & Editorial 06 Sep, 2022 Follow News


A global recession looms; inflation is spiking, economies are struggling, supply chains are under severe pressure, and a web of uncertainty surrounds the energy markets.

All of that is dovetailing into a severe cost-of-living crisis with evidence of the global turbulence washing up on our doorsteps in Cayman threatening the volatile economic recovery from the COVID-19 pandemic and most significantly hitting us in our pockets.

As the world struggles to reset from the public health and near economic strangulation of the COVID-19 pandemic, further tremors are now rocking the global trading and security system and forcing governments - and families - to adapt to the new realities.

This exceeds the oft-repeated admonitions at the height of the pandemic imploring us to adapt to what would be the ‘new normal’. This is anything but normal.

Even that perceived ‘new normal’ already seems outdated and replaced by a more ominous and foreboding reality. For the time being at least. And it’s crucial that we in Cayman keep abreast of these issues and how they are affecting us - as they already are.

The anticipated restrictions and adaptations that Covid-induced ‘new expected’ are being overshadowed by a reality that few have been prepared for.

The phrase ‘a perfect storm’ comes to mind, but this time in another and even more immediate and possibly longer-lasting context.

Post-COVID adjustments, arguably less severe and restrictive than previously feared, are now being compounded by the crippling double (possibly triple) economic effects of the pandemic, compounded by the disruptions caused by Russia’s war on Ukraine.

The ongoing fall-out from that conflict is already causing severe dislocations to the global supply chain, especially on shipping of vital agricultural supplies, especially grain, and a further knock-on effect on fuel supplies - the latter forcing many western governments to review their climate change timetable to shift from fossil fuels.

Cayman is not immune from the combined effects of these developments and the resulting cost-of-living squeeze.

While we are geographically distant from the real frontline of these issues, the jurisdiction’s central role in the global financial system puts it front and centre...and not just as a front-seat spectator.

As one of the most import-dependent economies, Cayman is particularly vulnerable to the knock-on effects of adverse developments in global trade, despite being an important financial centre that keeps the wheels of the global economy lubricated.

Every adjustment in the global markets, every policy shift by the major economies, and every tweak of interest rates by major central banks as they struggle to lessen the impact on their countries and citizens, impacts us in Cayman.

As we continue to monitor economic developments, particularly in the United States, the United Kingdom, Europe and wherever they originate, Caymanian Times endeavours to keep abreast and put them in context.

The same goes for global trends which have the potential for positive outcomes for Cayman.

Look out for our expanded global business and economy coverage as again Cayman is called on to navigate through the disruptions caused by turbulence in the global economy.

Each Friday we’ll devote an expanded full section to major global business and economic issues, especially where the impact on Cayman is obvious, apparent or definite.

To put it bluntly, the world’s business is Cayman’s business.

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