THE Island’s economy has contracted for the second year running, according to the latest report from Statistics Jersey.
Data released yesterday showed a 1.7% fall – in real terms – in the Island’s Gross Domestic Product last year, following a comparable 0.7% fall in 2025.
The latest report gave a figure of £7 billion for GDP – the total value of goods and services produced – for last year, and cited a decrease in banking income as the prime factor behind the fall.
Despite the decline over the past two years, Statistics Jersey said the Island’s economy remained 11.9% above its pre-pandemic level, growing by an average of 1.6% per year over the last decade.
GDP measures the total value of all goods and services produced during a year. It helps assess the overall size and health of Jersey’s economy over time by working out how much money the entire Island is generating.
When GDP rises, it typically means the economy is growing, businesses are doing well, and more goods and services are being exchanged.
The report also analysed GDP per capita, measuring how much economic output is produced per person.
Jersey’s GDP per head of population in 2025 was £66,600, a decrease of 2% in real terms from the previous year. Despite declining in both 2024 and 2025, GDP per head remained above its pre-pandemic level.
The financial and insurance sector, which makes up 38% of the economy, contracted by 4.8% in real terms, with banking activity alone dropping 9.7%.
After finance, the second-largest sector of the economy was recorded as real estate, with 11%. The sector’s contribution to overall GDP fell by 3.3% in real terms to a figure of £763 million.
One of the more striking falls was seen in the construction of buildings sub-sector, which saw a fall of 16.4%, from £164m to £137m.
