Guernsey economy shrunk less than expected in 2020

The hostelry sector suffered most during 2020

The Guernsey economy in 2020 is estimated to have contracted "significantly less than forecast", the States has said.

Gross Domestic Product (GDP) estimates show the economy contracted by 3% in real terms, compared to 9.2% in Jersey.

In December 2020, it was expected the economy had shrunk by 7% during the year due to the coronavirus pandemic.

Deputy Mark Helyar, treasury lead for the Policy & Resources Committee called it a "particularly positive result".

He said Guernsey's "response to Covid-19 has helped to mitigate the economic impacts of the pandemic".

Figures show a significant contraction in the sectors most impacted by travel restrictions with a 33% fall in the hostelry sector and 22% in the transport and storage sector.

The reported contraction in Guernsey's largest sector, financial services, was smaller at 2%.

Deputy Helyar said: "While we continue to offer support to parts of our hostelry and transport sectors, current indications are that Guernsey will have recovered most, if not all, of this activity during 2021 and continuing into 2022."

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