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Guernsey’s economy has been outperformed by Jersey since 2019.
Latest GDP figures for 2023 show it shrunk in real terms last year by 2% and it is now only 0.6% larger than in 2019.
That is in stark contrast to our nearest neighbour, where forecasts suggest 5% growth in that time.
"To close this gap, Guernsey must focus on pro-growth policies, similar to those of the new UK Labour government," said Richard Hemans, the lead on economic matters for the IoD Guernsey Branch.
"Key areas include supporting the Finance sector, infrastructure investment, enterprise, housing, skills development, labour force participation, and connectivity. Recent initiatives on housing and the Guernsey Enterprise Investment Scheme are welcome steps, but they must be effectively implemented. However, growth is likely to remain subdued in 2024 due to high interest rates, persistent inflation, and ongoing geopolitical risks."
Guernsey's GDP per capita decreased by 3%, indicating a drop in productivity as the population grew by 1%, and is now lower than in 2017.
Guernsey's total GDP is now esteemed a £3.488bn.
The financial and insurance sectors continue to contribute the highest proportion at £1.304bn, 37% of the total.
Pictured: Deputy Neil Inder.
Economic Development President Neil Inder spoke about the island's economic performance during his statement to the States Assembly this morning.
He said that Guernsey Finance, the promotional body for the sector, continues to represent value for money, facilitating the introduction of three new life branches on the island and a new fiduciary license.
"These have been the catalyst for numerous, numerous new trust company and fund structures being moved to or formed on the island. Guernsey Finance is also working on over 40 significant pieces of new business for Guernsey, including notably the establishment of a new banking license, a new insurance license, and also the establishment of a new fund manager."
The committee recently launched a two year pilot Guernsey enterprise investment scheme to encourage investment into high growth, early stage businesses.
Pressed on what more the committee could do to develop the economy, he said that he agreed with Policy & Resources President Lyndon Trott that the path to growth is investment.
He said that housing was key, but there were also other things like the Guernsey Development Agency's east coast development plan, the marina policy letter and harbour area action plans.
"All those things are basically opportunities for Guernsey. Growth has to come from investment. We can't sit here and wait for it to happen, it has to come from infrastructure and investment."
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