In his end-of-year economic summary, Mr Peedle suggests that although global economic growth is destined to slow slightly next year, down from 5.
% this year to 4.
%, this is well above the average of 3.
% over the last ten years.
Nevertheless, there are risks to keep in mind, he says, not least because Jersey is dependent upon international trade for its economic success, not least its financial services industry.
For instance, there may be further inflationary effects if oil continues to face increased global demand and disruptions to the supply from political tensions in the Middle East or climatic occurrences such as last autumn’s hurricanes.
A sharp slowdown in consumer spending in the United States would also have negative repercussions globally.
‘The recent weakness in the US dollar shows that the situation remains fragile in the US and that changes there can resonate around the globe,’ said Mr Peedle.
That risk increases if petrol prices rise or if house prices stagnate or fall.
