Jersey’s economy shrank slightly last year for the first time since the pandemic, driven by a decrease in banking income – while most sectors outside finance kept growing.
The latest report from Statistics Jersey shows that the island’s Gross Domestic Product (GDP) – the total value of goods and services produced – fell by 0.7% in 2024 to £6,859 million, driven by a sharp fall in banking profits.
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.
In 2023, Jersey’s GDP fell by 0.7% compared to the previous year, reversing a trend of post-pandemic growth.
Although 2024 saw a dip, Jersey’s economy remains 12.8% larger than it was in 2019.
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 2024, GDP per head of population decreased by 1.3% – down by about £800 from £66,600 in 2023 to £65,800 in 2024.
The driving force…
The decline was primarily driven by reduced net interest income in the financial and insurance activities sector, particularly banking, according to Statistics Jersey.
Pictured: The breakdown of the Jersey economy in 2024 by Gross Value Added (GVA).
The financial and insurance sector, which makes up 38% of the economy, contracted by 6.2%, with banking activity alone dropping 14%.
What about other sectors?
Outside finance, the picture was more positive, with the rest of the economy expanding by 3.1% in real terms.
Some industries experienced growth, with transport and storage leading the way, while others struggled.
Sectors that grew in 2024:
- Agriculture, forestry and fishing ↑ 5.9%
- Manufacturing ↑ 2.1%
- Electricity, gas, water, waste ↑ 4.0%
- Construction, mining and quarrying ↑ 1.3%
- Wholesale and retail trade ↑ 3.0%
- Transportation and storage ↑ 15.7%
- Information and communication ↑ 3.6%
- Professional, scientific and technical activities ↑ 4.9%
- Public administration and defence; social security ↑ 8.5%
- Education ↑ 7.8%
- Human health and social work ↑ 3.3%
- Other service activities ↑ 9.2%
- Activities of households as employers ↑ 6.0%
Sectors that declined in 2024
- Accommodation and food services ↓ 3.1%
- Financial and insurance activities ↓ 6.2%
- Real estate activities ↓ 1.9%
- Administrative and support services ↓ 0.4%
- Arts, entertainment and recreation ↓ 1.6%