Isle Of Man Economy Flourishing

by Robert Lee, Tax-News.com, London

30 March 2011

The Isle of Man Treasury Minister, Anne Craine has praised the island’s business community following the publication of further evidence that the island’s economy grew in 2010, noting that the diversity of offerings the territory provides has added to its resilience to the financial crisis.

The most recent quarterly economic report, covering the last three months of 2010, showed evidence of economic growth, including:

• Record numbers in employment;
• Falling unemployment;
• Healthy numbers of job vacancies; and,
• Steady increases in property values.

In addition, the Treasury’s Annual Earnings Survey showed that gross average pay in the Isle of Man increased significantly despite the downturn, by 3.4% to GBP591 per week in June 2010.

The figures show that half of full-time employees earned more than GBP493 per week and 10% earned more than GBP1,011 per week. The latest statistics showed that Island workers have closed the gap on their United Kingdom counterparts. Average earnings in the Isle of Man were 1.3% below those in the UK in June 2010, compared with 2.7% in June 2009.

The Survey is compiled and published by the Economic Affairs Division of Treasury and provides a snapshot of earnings taken around the midpoint of each year.

Craine commented:

“The continued buoyancy of the Manx economy during such a difficult period is a testament to the diversity, enterprise and sheer hard work of the Island’s business community. We must never lose sight of the fact that the private sector is the primary generator of wealth, jobs and the revenues that fund public services. The strength of our core industries and growth in niche sectors such as e-gaming and aerospace engineering is helping to widen the choice of well-paid careers available to local people.”

“Some areas of the economy, such as the construction industry, have experienced a difficult time of late and there will be further challenges ahead for the island in terms of securing jobs and earnings. A pay freeze remains in place across the public sector and other employers are showing restraint as the Isle of Man continues to respond to a substantial reduction in its share of VAT revenue. However, the overall resilience of our economy and jobs market is demonstrated in the results of the 2010 Earnings Survey which showed that average pay continued to rise for both men and women.”

“The government’s role is to maintain the right environment in which business can flourish, and on the basis of this latest evidence it seems to be succeeding in that task.”

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