All economic indicators suggest that 2007 was a boom year for Jersey’s finance sector. More than half (52%) of the gross value of Jersey’s economy is added by the finance industry. The labour market hit new heights, unseen for nearly a decade; more than 55,000 people were employed in the island, many in finance. Bank deposits, funds under administration and trust activity were all at record levels, despite a £7bn dip in deposits in the final quarter of the year due to the restructuring of two banks.
The available statistics suggest that business in Jersey held up well against the credit crunch and fluctuations in the global markets. However, we will only know the immediate impact once the first quarter’s figures for 2008 are released. Inflation, which climbed above government targets to 4.5% in December, is unlikely to be the only challenge finance faces in 2008. As Jersey Finance suggests, there is no need to panic, but legislators and policymakers will need to work closely with the finance sector to help maintain a positive momentum in the coming year. The judiciary, too, has a role to play. The reputation of a particular jurisdiction can be considerably enhanced if the judiciary is known for excellence in terms of the quality of judgments and the efficiency of the administration of the court system.
