The latest figures on the performance of the economy in 2014 provide a welcome boost and once again highlight the role of the finance industry as the major contributor to future prosperity, according to Geoff Cook, CEO of Jersey Finance.
The survey, ‘Measuring Jersey’s Economy GVA and GDP 2014’, published by the statistics unit of the States of Jersey, recorded that Jersey’s economy, as measured by GVA (Gross Value Added) grew by 5% in real terms in 2014, driven by real term growth of the finance sector.
There was a 9% increase in economic activity in the finance industry year on year, the highest percentage rise of any industry sector, as a result of a real term increase in GOS (Gross Operating Surplus) of almost a fifth. The survey also recorded that financial services accounted for 44% of the overall economic activity in the Island, by far the largest component. Geoff Cook added:
“These annual figures also sit well with other surveys that have been published recently and help paint a relatively positive picture for the financial services sector. The Survey of Financial Institutions indicated a rise in profits for the industry overall in 2014 with an optimistic forecast regarding employment opportunities and the more recent business tendency survey also pointed to a strong long term outlook for the industry.
“However, it’s clear that there is no room for complacency and that the economy as a whole is not close to the peak of economic activity in 2007 prior to the financial crisis. Nevertheless, this is the first year since then that economic activity overall has increased, led by the performance of the finance industry, and it’s extremely encouraging as the industry seeks to build further new business in markets around the globe.
“Furthermore, the buying power of a strong finance sector in turn supports the growth of other island industries.”