Economic Affairs

Revisions to Historic Data

Revisions undertaken to historic national income data to allow for improved coverage have provided the following gross national and gross domestic product estimates for the years 2001/02 to 2006/07.

National Income per Head 2007/08

ECONOMY GROWS FOR THE TWENTY-FIFTH CONSECUTIVE YEAR

The 2007/08 national income figures produced by the Treasury’s Economic Affairs Division, show there to be have been real growth that year in nearly every sector of the economy. The value of goods and services produced (or gross domestic product) in the Isle of Man economy over the year rose to over £2.0bn, an 11.7% increase over the previous year. With price inflation stripped out, real growth stood at 7.5%, marginally lower than in the previous year and similar to the average over the last ten years.

The Island’s per capita national income as a result is now 22% higher than in the United Kingdom and 29% higher than in the fifteen countries that until 2004 constituted the European Union.

Key points in the report demonstrate not just the overall strength of the economy, but also the diversity of the sources of growth:

• nearly a 20% rise in the non-banking finance sector;

• the continuing rapid expansion (over 40% in real terms) of the Information and Communication Technology (including e-business) sector;

• increased income throughout manufacturing, professional and company services sectors;

• a very good year for the tourist industry, supported by the Centenary TT.

It should be emphasised that the report relates to the year 2007/08. Since that time, the financial crisis has led to a global economic downturn and although the Isle of Man has not been as badly affected as many other nations, growth has slowed to around 2.5%, as projected in the 2009 Budget.

Treasury Minister Alan Bell welcomed the figures as confirmation of the strong performance of the economy up to mid-2008:

“These figures are consistent with what was expected for 2007/08” he noted before continuing “but it hardly needs me to say that the economic environment has changed substantially since then. We are pleased with how the economy has performed in the face of adverse global conditions, and particularly with how employment is being sustained. But there is a very long way to go yet before we can even begin to consider a return to normality”.

For further information, please contact Stephen Carse, Economic Adviser, Economic Affairs Division, Illiam Dhone House, 2 Circular Road, Douglas, Isle of Man, IM1 1PQ, Tel 01624 685741, Fax 01624 685747, e-mail economics@gov.im

Copies of the 2007/08 National Income Accounts are freely available from the Tynwald Library, Legislative Buildings and the publication is also available to download at the Division’s web page at www.gov.im/treasury/economic

Stephen Carse,

Tel 01624 685741,

Downloadable Documents
National Income 2007/08 (499 kb) Format:Acrobat PDF File National Income 2007/08

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