Isle Of Man's Economy Grows For 22nd Straight Year

by Jason Gorringe, Tax-News.com, London

16 August 2006

Provisional national income figures produced by the Manx Treasury’s Economic Affairs Division relating to the fiscal year 2004/05, reveal that the island's economy grew by 5.2% in real terms, representing the 22nd consecutive year of economic growth.

According to the Treasury, the value of goods and services produced in the economy over the course of the year, the Island’s GDP or Gross Domestic Product, equalled GBP1.5bn (US$2.8 billion), an increase of 11.5% compared to the previous year, and 5.2% after inflation.

This compares favourably with the performance of the UK economy (which grew in the year by 3.2%) and that of the EU (where member economies grew on average by only 2.2%).

Commenting on the figures, Treasury Minister Allan Bell noted that the figures were consistent with the growth expectations expressed in the Government Plan.

"The growth of the economy has continued at a sustainable and manageable rate and we estimate that growth since 2004/05 has been of a similar order. Clearly it is the reason why we have experienced unemployment rates at below 1.5% for so long and why we have been able to continue to finance improvements in the Island’s physical infrastructure and public services," he observed.

"We’re all aware of the challenges that lie ahead of us and for its part Government will continue to strive to lay the foundations for economic success by working closely with all stakeholders to produce a commercial environment that encourages entrepreneurial effort and inward investment whilst providing for secure and well remunerated employment," Bell added.

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