THE economic output of Jersey’s finance industry has declined almost 30 per cent since the pre-recession peak in 2007, new States figures have revealed.
The Survey of Financial Institutions, which was published on Wednesday, reveals that the total Gross Value Added [economic output, or goods and services produced] of the Island’s largest sector was £1.71 billion last year and declined by two per cent in real terms between 2015 and 2016.
The report, which is produced by the States Statistics unit, says that the decline was led by the banking sector, which is the industry’s largest sub-sector and accounts for £860 million of GVA last year.
Since the global financial crisis of 2008, the economic output of Jersey’s banks has almost halved in real terms and fell by six per cent last year. However, despite this downturn there was good news in other areas.
The trust and company administration and legal sub-sectors of finance fared better, increasing to a GVA of £670 million in 2016, which was an annual rise of three per cent.
Since its peak in 2007, finance’s total GVA has fallen in real terms from £2.32 billion [according to figures adjusted to 2013 values which was used as a benchmark] to £1.65 billion. The decline represents a 29 per cent drop. The industry’s GVA has remained relatively stable since 2010, however.
Treasury Minister Alan Maclean said that the figures in the report were ‘not surprising’, however, and the long-term decline in GVA was mainly due to the fall in interest rates since the global financial crisis.Subscribe to our Newsletter