It’s time to TURBO charge the Economy

On September 3, 2014, in The Economy, by Lyndon-Farnham

If elected I shall be seeking the position of Economic Development Minister not least because I believe that we must now put economic growth to the top of the agenda.  From the rejuvenation of Fort Regent to Sports and Events lead Tourism to FinTech to economic diversification and Small Business development.  We have all the ingredients we need and I am sure that with the right backing and government support Jersey can return to real economic growth together with all the benefits that will bring.

The benefits of economic growth include:

  1. Lower unemployment. With higher output businesses tend to employ more workers creating more employment.
  2. Higher Incomes. This enables islanders to enjoy more goods and services and enjoy better standards of living.
  3. Stronger States Finances. Economic growth creates higher tax revenues and there is less need to spend money on benefits. Therefore economic growth helps to improve the States finances.
  4. Improved public services. With increased tax revenues the States can invest more on health and education e.t.c.
  5. More money can be spent on sports and leisure facilities and protecting the environment. With higher *GVA a society can devote more resources to promoting recycling and the use of renewable resources
  6. Investment. Economic growth encourages investment and therefore encourages a worthy cycle of economic growth.

Useful information:

It is worth noting that in the four years since 2010 the UK economy has grown by 8.1 per cent – 1.1 per cent more than the original estimate, according to the UK Office for National Statistics.  It means the economy is now 2.7 per cent bigger than it was before the economic crash in 2007.  Overall, Britain has enjoyed the third best economic growth in the G7 since 2010 – more than France and Germany. This is very encouraging and good news for Jersey.

 *GVA – Gross Value Added:  GVA measures the economic activity taking place in Jersey overall and at the individual sector level.  It can be measured by 3 approaches:

  • expenditure (the sum of all final expenditure in the economy eg consumer and government spending, capital investment, imports and exports)
  • output (the difference between total production and the purchases made to generate that production)
  • income (the sum of profits and earnings)

At present data only exists in Jersey to enable calculation of the income measure.

The size of Jersey’s economy as valued by GVA was £3.6 Billion in 2012. The next report is due in September 2014.

 

 

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