Jersey's economy shrank by 0.7% in 2024 - report

Excluding finance, the economy grew by 3.1% in 2024

Jersey's economy shrank by 0.7% to £6.9bn in 2024, a report has found.

Statistics Jersey found the island's drop in gross domestic product, the market value of goods and services produced in the island, was predominantly caused by low interest income in the finance and insurance sector - particularly banking.

Excluding finance, the rest of the economy grew by 3.1%, productivity grew by more than 2%, despite an overall productivity dip of 1.2%, the report said.

Deputy Kirsten Morel, the Minister for Sustainable Economic Development, said it was "particularly pleasing" that non-financial services had grown - "showing that Jersey's economy is resilient and diversified".

He said: "While the economy was slightly smaller in 2024 compared to 2023, the contraction of 0.7% decrease was smaller than had been predicted by the Fiscal Policy Panel, and these figures demonstrate that Jersey continues to punch above its weight."

Morel said the financial and professional services had been "the engine of growth for Jersey" but due to interest rate changes the sector saw "volatility year-on-year".

"That contraction was driven by a fall in banking profits, which are closely tied to global interest rates, something we simply can't control," he said.

The Chief Minister Deputy Lyndon Farnham added: "Our economy remains strong, but we recognise that some sectors continue to face challenges, which we are working with them to resolve."