A SHARP fall in banking profits has caused Jersey’s economy to contract for the first time since the pandemic, according to new figures.
The latest report from Statistics Jersey shows that the Island’s Gross Domestic Product (GDP) – the total value of goods and services produced – fell by 0.7% in 2024 to 6.86 billion.
The decline was driven by reduced net interest income in banking, where output dropped by 14%.
Overall, the finance and insurance sector – which accounts for 38% of Jersey’s economy – shrank by 6.2%.
Outside finance, the economy grew by 3.1% in real terms.
Transport and storage recorded the strongest growth at 15.7%, followed by service activities (9.2%), public administration (8.5%) and education (7.8%).
Agriculture, professional services and health also expanded.
Sectors in decline, in addition to finance, included accommodation and food services (–3.1%), real estate (–1.9%), arts, entertainment and recreation (–1.6%) and administrative and support services (–0.4%).
Although 2024 marked the first contraction since the pandemic, the Island’s economy remained 12.8% larger than in 2019.
Statistics Jersey also measured GDP per head of population – a way of showing average economic output per person.
This indicator adjusts for population growth and is often used as a measure of living standards.
The report states: “GDP per head of population, or GDP per capita, is a useful measure as it provides insight into the average economic output per person within a jurisdiction. This metric helps to account for changing population size, offering a more meaningful comparison of economic performance.
“By focusing on the per capita figure, it becomes easier to assess the relative standard of living, productivity, and wealth of the population, rather than just the overall economic output.
“In 2024 GDP per head of population decreased by 1.3% in real terms, down by about £800 from £66,600 in 2023 to £65,800 in 2024.”
Labour productivity – the value of output per full-time worker – also slipped by 1.2% to £103,100.
Again, this was driven by the financial sector.
In finance, productivity dropped by 6.4%, but in the rest of the economy it rose by 2.3%.
Sectors that grew in 2024:
- Agriculture, forestry and fishing ↑ 5.9%
- Manufacturing ↑ 2.1%
- Electricity, gas, water, waste ↑ 4.0%
- Construction, mining and quarrying ↑ 1.3%
- Wholesale and retail trade ↑ 3.0%
- Transportation and storage ↑ 15.7%
- Information and communication ↑ 3.6%
- Professional, scientific and technical activities ↑ 4.9%
- Public administration and defence; social security ↑ 8.5%
- Education ↑ 7.8%
- Human health and social work ↑ 3.3%
- Other service activities ↑ 9.2%
- Activities of households as employers ↑ 6.0%
Sectors that declined in 2024
- Accommodation and food services ↓ 3.1%
- Financial and insurance activities ↓ 6.2%
- Real estate activities ↓ 1.9%
- Administrative and support services ↓ 0.4%
- Arts, entertainment and recreation ↓ 1.6%
