Isle of Man’s economic growth ‘stronger than most in Europe’

An annual report from Moody’s Ratings has found the Isle of Man’s (IoM) financial standing and economic growth to be ‘stronger than in most of Europe’.

The international credit ratings agency suggests the Island’s growth to climb from an estimated 1.5% in 2023 to 3% by 2025, rating it’s economic strength as ‘a3’, which is a robust record of economic growth and high income levels.

In summary, the a3 credit rating reflects high wealth levels, strong institutions, prudent fiscal policies, low debt, and substantial reserves.

Challenges identified included its close ties to the UK, which bolster its institutional strength but also expose it to the UK’s economic fluctuations. It also highlighted that the IoM faces risks from its large banking sector and global tax pressures but that the stable outlook is supported by the UK’s restored policy predictability and the IoM’s proactive policymaking.

Commenting on the findings, Treasury Minister Dr Alex Allinson, said: ‘This report demonstrates that the island is on the right path.

‘It recognises that our economy, along with those of our near neighbours, has been impacted by international factors such as the Covid-19 pandemic and Brexit, but is showing signs of a healthy recovery.

‘It also acknowledges Isle of Man Government’s “fiscal prudence” and “proactive policymaking” which have helped maintain stability in spite of global uncertainty.

‘The economic strategy sets clear targets in relation to the labour market, aiming to grow the island’s working population by 5,000 which will help address job vacancies and skills shortages.’

To read the full report visit: https://www.gov.im/media/1384534/moodys-isle-of-man-credit-opinion-report-may-2024.pdf