Policy Brief on Economic Trends updated to include FPP analysis

The Centre’s Policy Brief Economic Trends has been updated to include the analysis in the Jersey’s Fiscal Policy Panel Economic Outlook, published on 19 May.

Key points made by the Panel -

• Jersey’s economy declined by 1.5% in 2024. Falling bank profits was the primary given for this.
• Jersey’s labour market remains tight. The number of jobs grew by 0.8% in 2024 but this employment growth was largely limited to the public sector.
• Inflation generated on-island has increased and can be expected to persist. The living wage, along with the public sector pay award, will cause wage pressure across Jersey’s economy and risks creating more inflationary pressure. The underlying inflation rate is expected to be 3.7% in 2025 and 3.6% in 2026.
• The economy is expected to remain subdued in 2025 with 0.4% real growth, considerably below the pre-pandemic average of 1.5%.

The Brief provides a summary of the key data on trends in the Jersey economy, in particular the major variables – economic growth, retail prices and earnings, as well summaring the analysis by the Fiscal Policy Panel.

‍