The Island has a buoyant economy, despite a slight drop in national income for 2015/16.
The national income report for the year, published today, shows that the Island’s gross domestic product (GDP) stood at £4.45 billion – a decline of 0.9%.
GDP is the value of goods and services produced locally and a measure of personal and corporate income derived from economic activity on the Island.
The Island’s gross national income (GNI) – also known as gross national product – declined by 3.4%.
GNI also includes income received from abroad in the form of interest, rents, profits and dividends and represents the total income of Manx residents and companies.
The Island’s economy has enjoyed 32 years’ consecutive growth but factors affecting the e-gaming and transport and communications sectors led to the drop in national income.
These include additional taxes and licence fees paid by some e-gaming businesses and the sale of vessels by some shipping companies.
Importantly, personal income increased in real terms for the third year in a row after a few years of decline, meaning that, on average, people are starting to have more money in their pockets, the report by the Cabinet Office’s Economic Affairs unit shows.
Chris Thomas MHK, Minister for Policy and Reform, said:
‘Personal income is the figure that matters most to nearly all of us, because it most directly affects our lives.
‘With more money, people can spend with more confidence, benefiting our businesses and our community.’
Commenting on the report more widely, the Minister said:
‘Sectors where national income grew include banking and insurance, which is good news for the thousands of people who are employed in these sectors locally.’
The report is compiled after individuals and companies’ Income Tax affairs for the year are finalised, hence it reflects 2015/16.
The Minister said:
‘More recent indicators, such as increasing levels of employment, a turnaround in population and improved income tax receipts, demonstrate strength in our economy and are positive indicators for the future,’
The report can be read at /categories/tax-vat-and-your-money/national-income/