The Manx economy recorded modest growth in 2023/24, but actually contracted once inflation was taken into account, according to the latest National Income Report.
It means GDP fell for a second consecutive year, following a 5% decline in 2022/23. However, the report notes that GNP growth in 2023/24 was the strongest since before the Covid-19 pandemic.
Gross Domestic Product increased from £5.80bn to £5.84bn over the year, a rise of 0.6% in cash terms. However, after adjusting for inflation, GDP fell by 2.5%, indicating a real-terms contraction in economic output.
The report shows a contrasting picture for overall income, with Gross National Product rising by 11.3% to £5.85bn, or 7.8% in real terms. Gross National Income increased by a similar margin, reaching £5.87bn.
Statistics Isle of Man said the figures highlight the difference between activity generated on the island and income flowing to Manx residents and companies, particularly from abroad.
`Despite these figures, it was only in October that Treasury Minister Dr Alex Allinson insisted there was no evidence that the Manx economy is in recession.
Sectors
Insurance remained the island’s largest economic sector, accounting for 16.9% of GDP. It was followed by eGaming at 14.2%, professional services at 13.8%, other finance and business services at 10.2%, and banking at 8.6%.
Almost half of all sectors experienced growth in real terms during the year. Utilities and mining and quarrying recorded particularly strong increases, while construction, transport and communications, and information and communication technology saw notable declines.
Company income continued to be the main driver of the Manx economy, making up 59.5% of GDP, although this was down from 63.4% the previous year. Personal income accounted for 32.8%.
You can read the full report here.