30% fall in finance industry economic output

macleanr

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.

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Comments for: "30% fall in finance industry economic output"

Mr Sensible

It's really weird , his best mate Geoff cook back last September said in the media that the industry was doing great after the brexit vote, these two are full of spin and bull s$$t and always have an upbeat answer for everything, why don't they just come real and tell the truth.

Squawkie L Pelican

We're not doing great... THEY are doing great.

Squawkie L Pelican

Are these multi billion superfunds gonna yield anything or what? Switch the money tap back on.

Shoot to Thrill

This will be music to the ears of Reform Jersey then.

Squawkie L Pelican

I heard no metal or accordion music in this piece.

Mr.Invisible.Face

Yawn. Must be time for bed.

Andre

So a serious decline in our major industry, whilst in the same number of years we have increased the population by at least 10,000. Can anyone explain how all that is supposed to stack up? And would the media please challenge one of our senior Ministers about this curious mismatch between the growth in the population and the growth (or fall) in the economy? This is a legitimate question, and no one is addressing it.

JamieK

A wondered how long it would take for clanger MacLean to come out of hiding, especially now ozouf got the boot..!

Full of not air as usual.

JerseyReaction

Don't worry Andre, Jersey Digital Moretta will come to the rescue with his parking app ! They are throwing millions at him to save us all.....