Data shows Jersey economy shrank by 1.5% last year

Jersey's economy shrank by 1.5% in 2024 after strong growth in 2023, an independent body looking at the island's finances has estimated.

The Fiscal Policy Panel (FPP) found construction, real estate and retail were among the sectors which saw a financial decline, with reasons given being rising costs and people spending less money.

It also found that the public sector's expansion had helped overall employment.

Welcoming the report, Treasury and Resources Minister Elaine Millar said: "While there is significant economic volatility across the globe, Jersey continues to be well placed to face these challenges and attract new business and investment."

The report said a decrease in bank profits, which comprised 20% of total Gross Value Added (GVA) in 2023, had led to the economy shrinking.

The panel estimated that real GVA, which is a measure of economic output, fell by 1.5% in 2024.

Its economic outlook report said bank profits were mostly driven by deposit rates and capital flows, factors that were largely external to Jersey, while real decline was not necessarily representative of performance in the rest of Jersey's economy.

It cited strong earnings growth, particularly in financial services, which were less affected by mandatory increases.

Millar said the advice from the FPP, which is an independent advisory body, "reinforces the importance of our work to curb expenditure growth and ensure the competitiveness of our economy".

"Ministers will continue to maintain sustainable public finances and support long-term economic growth in the interests of Islanders," she added.

A Government of Jersey spokesperson said the FPP's findings would help inform the development of the government's budget for 2026-2029, with ministers reaffirming "their commitment to sustainable public finances and long-term economic resilience".

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