ECONOMIC Development Minister John Shimmin says he is optimistic the island will maintain strong economic growth in 2013.
Mr Shimmin said the Manx economy performed well in 2012 in what continues to be a tough global economy.
Its estimated growth for that year was 3 per cent in real terms compared with an average of 1.4 per cent across the world’s major developed economies.
And this year, economic growth is expected to rise to 4 per cent in real terms.
Mr Shimmin said: ‘My department is playing a key role in driving this growth, working closely with colleagues in government and the private sector.
‘I believe we can take much comfort that our island continues to enjoy a strong, growing economy which is vital if we are also to achieve government’s other priorities of balancing government’s budget while protecting the most vulnerable in our community.’
The Minister said the foundation for sustainable growth was development of key export-generating sectors such as financial services, manufacturing, ICT, eGaming, tourism, aviation and ship management.
He said his department continues to both help existing local businesses to expand as well as attract new businesses in these key sectors.
‘We estimate we helped to create 130 jobs in these sectors in 2012, which then stimulated growth in the wider economy. We are forecasting this figure will increase to 180 jobs in 2013, building our confidence that our overall growth projections are credible in what will continue to be a tough global market,’ he said.
For every job in export-earning sectors, the island’s economy typically has 2.5 additional jobs in other supporting sectors, including the public sector.
Mr Shimmin said his department will be focusing on three key areas in what will be a crucial year this year – maintaining growth in financial services, supporting the wider economy and helping the unemployed into work.
While the island has a much lower rate of unemployment than most of the developed world, the number of those unemployed for over a year continued to rise for much of 2012 to nearly 200. This has a large social cost as well as cost to the taxpayer.
Providing additional support to those who need it will be a key priority in 2013 including introduction of a Community and Social Enterprise Fund, a ‘Payment by Results’ scheme and a programme of work placements.
