Financial Services Partnership Briefing Note
National Income Report 2012/13 Released
The Isle of Man Government has posted strong gross domestic product (GDP) and gross national income (GNI) figures for the 2012/13 fiscal year, confirming the Department’s estimates of strong growth for the period. GDP grew by 3.2% in real terms, up from 2% in 2011/12. GNI grew by 4.7% in real terms. The Isle of Man grew far faster than most developed economies and had comparable growth to leading OECD nations Israel and Norway for the period. The Isle of Man has now enjoyed 32 years of successive growth.
The figures provide further evidence of the changing sectoral composition of the Island’s economy. The Isle of Man’s economy is now more diverse in terms of both its range of sectors and its international target markets than ever before in our history. In particular, E-Business (which includes both E-Gaming and Information and Communication Technology) has continued to grow rapidly to represent approximately 20% of the economy.
For financial services, these figures (which relate to the economy 18 months ago) show what we already know. Banking shrank as the savings bank sector contracted as investors switched asset class in the face of negative real interest rates. Meanwhile the insurance sector continued to grow, both for life and pensions as well as captives. The Isle of Man is increasingly being recognised as a centre of excellence for insurance and is winning business from important emerging markets including the Middle East and Asia.
All evidence from the last 18 months indicates that the Isle of Man economy is continuing to grow strongly. With regard to financial and professional services, the Department is committed to supporting the industry as it forges a new identity and continues to evolve in the face of global economic and regulatory forces.
Chris Corlett, Chief Executive Officer