Economic report highlights Island’s resilience

THE quality and diversity of the Isle of Man’s economy is providing resilience at a time of unprecedented global turmoil, according to the latest quarterly economic report to the Council of Ministers.

The publication, relating to the period January 1 to March 31, highlights a number of local business sectors that are continuing to perform strongly. E-gaming is identified as the activity with the most potential for further expansion, with significant growth predicted during 2009.

There are also positive indicators for space commerce, shipping and aircraft registration and aerospace engineering. It is hoped that these growth areas, in particular e-business, will provide employment opportunities for any Island workers displaced from the financial services sector.

Overall, the quarterly report presents a mixed picture, with a challenging year ahead forecast in banking and tourism, along with certain aspects of the construction and manufacturing industries. The Island’s jobless total stood at 947 at the end of March which represents 2¼% of the economically active population.

The report states:

‘This compares favourably with the UK rate of 6.7% and the corresponding average EU rate of 7.6%.’

The current economic climate is also reflected in the work permit figures, with the number of new permits issued falling by 520 – about 33% – compared with the same period in 2008. In light of market conditions, additional scrutiny is being applied to new applications for roles in some sectors where there is an availability of suitable Isle of Man workers.

The quarterly report also confirms that the Island’s housing market is starting to feel the effects of the economic downturn. While the average sale price over the past 12 months was 4.9% higher than in the previous year, that figure has increased only marginally – by half of one percent – over the first quarter of 2009.

Treasury Minister Allan Bell MHK said:

‘This latest quarterly report confirms that the economic slowdown is having an impact on the Isle of Man. However, the Island is currently not in recession and the economy is expected to grow by 2.5% in the year ahead. The diversity of our economic base and quality of our niche sectors is providing great strength and demonstrating that the Island can respond positively to changes in the global environment.’