S&P Global Ratings is projecting that Guernsey’s economy will post a strong recovery in real GDP of 4.8% in 2021. It also comments that the government deficit peaked last year at only half of what was previously forecast. November's Budget revealed that the island was expected to record a £59m deficit for 2020.

For Deputy Mark Helyar, who became Policy & Resources' Treasury lead in October, it owes much to the island's response to Covid-19. The review notes how much of the economy was able to return to normal trading in the middle of last year. 

“This ratings decision reflects just how well our community has handled its response to Covid-19. Being able to remove our lockdown restrictions and return to a relatively ‘normal’ life within the Bailiwick has helped many sectors and minimised the impact on the Island’s finances."

Pictured: Deputy Helyar said it was critical that many business had been able to resume trading as normal last summer. 

"We cannot be complacent and the challenges for our public finances go beyond dealing with the pandemic, but it’s right that our relatively good economic position is recognised.”

While the current position is stable, the review also points to uncertainties in the future, not only relating to the pandemic.

The future relationship between the UK and EU following the end of the transition period is regarded as a potential concern, however it is yet to be seen what - if any - major effects that will have on Guernsey's economy and our relations with Europe.