Select a region
Guernsey's workforce and GDP have continued to grow, as has the population.
This is the sixth year in a row that the economy has grown, reaching the £3.3bn mark. It has been driven mainly by the finance sector and professional services supported by the small growth in the population.
The data, which was released in the Guernsey Economic and Financial Stability Overview, shows that GDP went up by 1.7% in 2018. Its growth in 2016 and 2017 was also revised up as more data was made available to 3% and 4.6% respectively.
Secondary economic indicators such as employment and earnings suggest that GDP continued to grow in real terms through 2019 but that, when official estimates are published in the summer, they may show a slower rate of growth than the three previous years. Both UK and global growth rates are expected to be slightly less strong in 2020 and this should reflect positively on economic conditions in Guernsey as the year progresses.
The population starting to grow is significant. For the last several years, it has seen a very slow decline, with the island having around 240 less people than its peak in 2011. The growth has come from fewer people moving away, as the birth rate has remained lower than its normal, and there are fewer births than deaths every year.
Median earnings have increased in real terms by 0.9%, with Guernsey’s extremely low unemployment levels meaning there is demand and competition for workers; and the participation rate, which is a measure of those who are economically active, at 78%, remains very strong.
Employment in the Finance sector continued to grow year on year to June 2019 as did employment in professional and business services and information and communication. However, employment in more domestically focused sectors such as construction and retail declined slightly over the same period.
"There are a lot of positive signs for our economy and particularly, the growth in GDP and growth in islanders’ earnings are very welcome. The small increase in our population size as a result of people moving to the Island, and fewer people leaving, is also a good sign and reflects the attractiveness of Guernsey as a place to live and work for those supporting our economy and community," Deputy Gavin St Pier said.
"This performance doesn’t just happen but is as a result of a number of years of effort and discipline and the maintenance of our stability. This has created the right conditions for a positive economic environment. However, we cannot take this for granted and assume it will continue. As a small, open economy, we remain more vulnerable than large economies so there is no room for complacency."
Pictured top: Deputy Gavin St Pier and a pie chart showing the distribution of employment in Guernsey's finance industry.
Comments
Comments on this story express the views of the commentator only, not Bailiwick Publishing. We are unable to guarantee the accuracy of any of those comments.