Businesses 'pessimistic' about future of economy

The Institute of Directors Guernsey said its economic confidence survey revealed business leaders have lost confidence in 2024

The Institute of Directors (IoD) Guernsey said its latest survey showed a "fall in confidence" between May and November 2024.

Business leaders were feeling "quite pessimistic" about the island economy over the next 12 months, according to the economic confidence survey.

The survey showed a net positive reading of -25% confidence in the local economy, lower than the -18% result in May 2024.

It added the percentage was "considerably higher" than the UK which stands at -58%.

'Stubborn inflation'

"Respondents on balance expect their revenue over the next 12 months to be higher with a net positive percentage reading of +32%," said the IoD.

The economic lead for the IoD Guernsey branch Richard Hemans said the results showed that confidence had "deteriorated with optimism about the Guernsey economy and profit expectations both falling".

"The survey was completed against the backdrop of the structural fiscal deficit and uncertainty over how it will be filled, stubborn inflation, the ongoing housing shortage and well-publicised difficulties with air and sea links," he said.

Employment rise

Mr Hemans added: "However, reflecting the results of our first survey, respondents remain confident about the prospects of their own organisations.

"Results show that they expect costs to increase at a slower rate and plans to increase employment are in place, which is positive."

He said the data would help shape its future activities, alongside the recently conducted research on the social capital.

The full survey results can be found on the IoD’s website. The next Directors' Economic Confidence Survey will run in May 2025.