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Jersey Sees Dip In Finance Sector Output In 2016

by Amanda Banks, Lowtax.net, London
04 July, 2017

There was a dip in the gross value added by the local financial services sector to the Jersey economy, according to new data from Jersey's Statistics Unit.

Each year Jersey prepares a report looking at the gross value added by industry sectors. This is calculated by adding total operating surpluses with employee compensation.

The GVA by the finance sector dropped two percent in real terms compared with 2015. In addition, productivity (inflation-adjusted GVA divided by the number of employees) fell by four percent in real terms compared to 2015.

Total expenditure on employees in 2016 – including salaries, bonus payments, employer social security, and pension contributions – remained unchanged compared with 2015.

Jersey Finance, the financial services promotional agency, said that despite growth in the trust and company administration sector, which was up 10 percent year-on-year, the unchanged GVA in the legal, fund management, and accountancy sectors, and the four percent fall for the banking sector meant that overall there was a slight decline.

Geoff Cook, CEO of Jersey Finance, commented: "These figures show that financial services continues to be the driving force in Jersey's economy and resilient in a challenging global economy. Our banking sector is the engine room and performing effectively in the face of low interest rates internationally, which affect its productivity, while trust and company administration continues to perform extremely well."

He continued: "We saw very good years in 2014 and 2015, and the trend continues to be positive, but the reality is that the cost of business is rising, and firms are needing to work harder to generate the kind of revenues they were used [to] before the 2007-2008 crisis."

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