Jersey's economy grows 7.3% in last year driven by finance
- Jersey's economy grew by 7.3% in 2023, driven by a 19.4% increase in the financial and insurance sectors.
- GDP per capita increased to £63,500, indicating improved living standards for residents.
- The contrasting economic performance between Jersey and Guernsey raises questions about the sustainability of Jersey's growth.
In 2023, Jersey's economy experienced significant growth, with a reported increase in Gross Domestic Product (GDP) of 7.3% compared to the previous year. This growth, amounting to £6.58 billion, was primarily driven by the financial and insurance sectors, which saw a remarkable rise of 19.4% in real terms. In contrast, the rest of the economy only grew by 0.4%, indicating a heavy reliance on these key sectors for overall economic performance. The report from Statistics Jersey highlights that GDP per capita also rose by 7.0% in real terms, increasing from £59,400 in 2022 to £63,500 in 2023. This metric is crucial as it accounts for changes in population size, providing a clearer picture of the standard of living and productivity among residents. Comparatively, Guernsey's economy faced a downturn, shrinking by 2% in 2023, attributed to a decline in its finance sector. This contrast underscores the differing economic trajectories of the two islands, with Jersey's financial sector thriving while Guernsey struggles. Overall, the data reflects a robust economic performance in Jersey, driven by its financial services, while also raising questions about the sustainability of such growth and the potential vulnerabilities of relying heavily on specific sectors.