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Chief Minister welcomes evidence of continuing economic growth

Posted by on 21st October 2013

Chief Minister Allan Bell MHK has welcomed evidence of continuing growth in the Isle of Man economy.

The national income accounts for 2011-12, released on 18 October 2013 by Treasury, show a 29th successive year of economic expansion.

The Isle of Man is now ranked in the top 10 by the World Bank out of 214 international economies in terms of Gross National Income (GNI) per head of population.

And the Island’s Gross Domestic Product (GDP), the sum of salaries and company profits, has increased by 7.9% to become the largest of the Crown Dependencies for the first time.

This strong economic performance has been underpinned by continued growth in a number of business sectors, including e-gaming and engineering.

The Chief Minister said: ‘This is extremely positive news and reflects the efforts made over many years to develop the Isle of Man economy. The success of our established industries and diversification into high-value emerging sectors has provided the resilience to weather the worst of the recent downturn and keep us on an upwards curve. Where the Isle of Man was once considered the poor relation of the three Crown Dependencies, it has continued to grow steadily to outperform both Jersey and Guernsey.’

The Isle of Man’s Gross Domestic Product of £3.79 billion in 2011-12 equates to a GDP per head of population of £44,600. This compares with an equivalent measure of national income of £3.61bn (£36,700 per head of population) in Jersey and £2.01bn (£31,846) in Guernsey.

The Manx economy is substantially different than larger developed nations, but in the World Bank Index the Isle of Man ranks ahead of the Channel Islands for the first time after growth of 8.5%, or 2.5% in real terms (after inflation is removed).

The Chief Minister said the Isle of Man is looking to build on these solid foundations by winning more business and jobs from countries across the globe, including China and the Middle East.

The Department of Economic Development is spearheading a range of initiatives, including Vision 2020, to ensure the Island remains well placed to compete in a fast-moving global environment.

While highlighting the success of the Isle of Man’s international-facing businesses, the Chief Minister sounded a note of caution in respect of the domestic economy and Government’s fiscal position.

Mr Bell said: ‘Against this positive backdrop is recognition that key parts of the domestic economy such as construction and retailing are still struggling. We must also be aware that economic growth alone will not address Government’s budgetary pressures. That is why my statement to Tynwald on Tuesday emphasised the need for radical changes and greater efficiencies within Government.’

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