Guernsey: Country and Foreign Investment
Economy and Currency
Guernsey's economy is stable, with an expanding financial services sector that accounts for over half of the island's total income. By the end of quarter one of 2013, 2% of the population were registered as unemployed; inflation was 2.7% at the end of June 2013.
Outside the financial arena, the main business sectors are manufacturing, tourism and agriculture, although their relative importance has declined in the face of a booming financial sector. Income derived outside Guernsey by wealthy immigrants also makes a substantial contribution to the island's economy.
The economic cycle in Guernsey tends to mirror that of the UK. GDP has risen more than 300% since 1965, and in 1998 topped GBP1bn for the first time. GDP stood at an estimated GBP2.742bn in 2012 (est) with GDP per head of USD44,600 at purchasing power parity.
The government of Guernsey has consistently favoured development of the island's offshore sector, but the island's economic success puts pressure on internal resources, so that the administration operates a highly selective immigration policy for both individuals and businesses. For the same reason, the island offers no incentives, grants or exemptions to inward investors.
The island's currency is the British pound; there are no exchange controls.