THE Isle of Man’s economy is showing signs of recovery but it’s a case of cautious optimism, rather than a confident prediction.
That is the theme of the latest quarterly economic report produced by the Council of Ministers.
The government is sending out an upbeat message about the Isle of Man’s economy with the report showing continuing low unemployment figures and a positive response from businesses wishing to relocate to the Island.
The report says there is “a solid outlook generally” for the Isle of Man and strong growth anticipated in e-business and parts of the manufacturing sector, but warns that if there is any decline in the global financial situation this could have an impact on the current positive outlook.
Price inflation on the Island rose in the first quarter as anticipated. In the short term much will depend on movements in energy prices and on any indirect tax changes that might be introduced should there be a further UK Budget this year. Longer term much will depend on whether global economic recovery results in higher commodity prices and so reinforce inflationary pressure already likely to strengthen from the direction of the asset markets.
The report said that the Island’s housing market showed signs of a pick-up both in the number of sales and in the average transaction price over the first quarter of the year.
The report adds, “Economic recovery in the UK and beyond can only benefit the Island and if such recovery is secured then one can reasonably expect the Island’s economic performance in 2010/11 to improve upon the 2% estimated for 2009/10.
“The sector reports, with one or two notable exceptions (eg funds, construction), present a solid outlook generally, with strong growth anticipated in e-business and parts of the manufacturing sector.
“Further disturbance in the global financial picture emerging from risks over sovereign debt would clearly put this improving outlook at risk for large parts of the economy.”
In summary, the quarterly report for each sector of the economy had a generally positive outlook.
Further more detailed reports are in our Business and Finance section.
