Jersey’s economy shrank slightly during 2025, for the second successive year, newly-released data has confirmed.
While most sectors remained stable, a decrease in banking income was cited by Statistics Jersey as the prime driver for a 1.7% fall – in real terms – in the Island’s Gross Domestic Product (GDP) for 2025, following a comparable 0.7% fall the previous year.
The latest report gives a figure of £7 billion for GDP – the total value of goods and services produced – for last year.
Despite the decline over the past two years, Statistics Jersey said the Island’s economy remained 11.9% above its pre-pandemic level, growing by an average of 1.6% per year over the last decade.
But what do these figures really mean, and why do they matter?
What is GDP and why is it important?
GDP measures the total value of all goods and services produced during a year. It helps assess the overall size and health of Jersey’s economy over time by working out how much money the entire Island is generating.
When GDP rises, it typically means the economy is growing, businesses are doing well, and more goods and services are being exchanged.
What does GDP per capita tell us?
GDP per capita shows a country’s GDP divided by its total population. It is a way to measure how much economic output is produced per person.
This measure gives a sense of the average standard of living as it adjusts for changes in population size.
In 2025, GDP per head of population was £66,600, a decrease of 2% in real terms from the previous year.
The driving force…
The decline largely stemmed from reduced net interest income in the financial and insurance activities sector, notably in banking.
The financial and insurance sector, which makes up 38% of the economy, contracted by 4.8%, with banking activity alone dropping 9.7%.
What about other sectors?
Outside finance, the picture was mixed, showing modest real-term growth of 0.2%.
Sectors that grew in 2025:
Agriculture, forestry and fishing ↑ 4.3%
Electricity, gas, water, waste ↑ 2.7%
Professional, scientific and technical activities ↑ 2.7%
Public administration and defence; social security ↑ 1.6%
Human health and social work ↑ 7.3%
Activities of households as employers ↑ 2.0%
Real estate activities ↑ 3.3%
Arts, entertainment and recreation ↑ 5.3%
Sectors that declined in 2025:
Manufacturing ↓ 3.0%
Construction, mining and quarrying ↓ 6%
Wholesale and retail trade ↓ 3.1%
Accommodation and food services ↓ 1.1%
Transportation and storage ↓ 3.9%
Information and communication↓ 1.4%
Education ↓ 6.9%
Financial and insurance activities ↓ 4.8%
Administrative and support services ↓ 4.7%
Other service activities ↓ 0.8%
