2019 saw economic growth in water supply and a drop in the arts

Friday 20 November 2020

Guernsey’s annual GDP and GVA bulletin has been released highlighting growth in the economy before the pandemic hit.

Prior to the effects of the corona virus pandemic, which were revealed in this week's Budget for 2021, Guernsey was in a strong position with our total GDP up to £3,252m, which was 2.6% higher than 2018.

Per-capita we were 56% higher than the UK at £51,000. Gross Value Added is the total amount a sector brings into our economy and is broken down annually to highlight any changes.

Pictured: The total GVA for the island is split between a number of different sectors.

GVA growth has been strongest in the water supply, sewerage, waste management and remediation sector. It has grown by 35% in the past five years. Electricity, gas, steam and air-conditioning has recorded the second highest growth by 33% in the same time period.

The arts, entertainment and recreation sector saw the biggest drop, with the GVA - a measure of economic performance - falling by 39%. This sector accounts for a small proportion of the entire island’s GVA, so fluctuations can be larger than in other areas.

Helen Walton, Head of Data and Analysis for the States, explained where the GVA figures come from.

“It’s the total of company profits and any wages, bonuses and other benefits paid to their employees."

"It also includes any sole traders or self-employed people and their profits and wages. All these values get added together for the total figure for a sector.”

Pictured: Guernsey's economy has continually increased over the past five years, however economy has taken a significant hit this year due to the pandemic, which has caused economic damage across the globe. 

Guernsey’s finance sector continues to be the largest source of income; it provided £1,280m of our total GVA, which equates to around 40%.

“There are lots of different uses for these figures,” said Mrs Walton, “it gives us the ability to compare with other jurisdictions. The figures get used in our states fiscal framework, to guide rules for government spending and borrowing.”

You can read the latest GDP and GVA bulletin online at www.gov.gg/gdp

Pictured top: The annual bulletin is a good indicator of how Guernsey's economy is doing compared to other jurisdictions.