New Research on Jersey’s Global Economic Footprint
New research from the Centre of Economics and Business Research (Cebr) on Jersey’s contribution to global value chains has been published today. The figures show that the Island makes a very significant impact on the global economy.
Cebr’s report ‘Jersey’s Contribution to Global Value Chains’ was commissioned by Jersey Finance to understand Jersey’s global economic footprint. It reveals that on average each year during the period examined (2017 to 2020), £1.4 trillion of capital was intermediated in Jersey, supporting £170.3 billion of global economic output, 5.1 million jobs worldwide, and £73.3 billion in associated wages, through global value chains facilitated by the Island.
The report also highlights the specific impact of Jersey’s funds, banking, and trusts and asset holding vehicles sectors on the global economy, as well as the crucial role played by Jersey’s professional and legal services sector.
The research was carried out in 2021, with assistance and data provision from Jersey’s financial services firms, namely banks, funds and trust companies. Organisations were surveyed to identify where Jersey’s administered capital originated over a four-year period between 2017 and 2020, as well as its end geographic allocation. This research was complemented by data from the Jersey Financial Services Commission, Statistics Jersey, Jersey Finance and other sources.
Joe Moynihan, Chief Executive at Jersey Finance, said “Capital is pooled in Jersey and subsequently redistributed through value chains. This redistributed capital is utilised worldwide, generating further real economic activity, translating to employment opportunities and wage payments for individuals. Jersey plays a critical role as a facilitator of this economic activity – it improves the ease with which capital can circumnavigate the global economy.”
Owen Good, Managing Economist at CEBR, added: “The figures show that, although Jersey’s GDP is relatively small compared to many nations, the island makes a very significant impact on the global economy. Our research also found that despite the global economic turmoil resulting from the COVID-19 pandemic, the impact on Jersey’s role in supporting global value chains has been limited and that Jersey’s robust contribution looks set to continue.”
You can learn more about the new research here, including regional analysis. You will need to login (or create a login) to access it.