Guernsey businesses feeling negative about economy – survey

Guernsey business owners are feeling negative about the island’s economy over the next year, a survey suggests.

The Guernsey Institute of Directors (IoD) said traders who responded to its survey had said travel disruption, a lack of housing and the cost and availability of labour were among the main reasons they were losing confidence in the local economy.

However, the IoD said business owners were more confident about their organisations’ prospects over the next 12 months.

States of Guernsey leaders said many of the concerns highlighted in the survey were being “actively addressed”.

Results from the survey were measured in a net positive percentage, based on the number of positive responses against negative responses, the IoD said.

It said the results of the survey, which was completed by 20% of its membership, suggested traders had a -18% net positive response when asked for their views on Guernsey’s economy.

The IoD said travel links were the main concern raised by traders ahead of labour costs and availability, skills shortages, housing and compliance with government regulation.

However, the survey suggested traders were more optimistic about their own businesses performing well in the next year, with a +47% net positive response.

The IoD said traders gave a +30% net positive response when asked whether they believed their revenue would increase over the next 12 months.

The majority were hoping to increase their staffing levels and investment into their business, the IoD added.

Richard Hemans, the IoD’s economic lead, said while the survey had a lot of positives, the negatives needed to be looked at.

He said: “It is encouraging that businesses are still looking to employ people and invest in their productive capacity because it suggests confidence in their prospects.

“The negative impacts reported are not new news but clearly need to be addressed with urgency.”

Deputy Neil Inder, president of the Economic Development Committee, said he was encouraged by a lot of what had come out of the survey.

He added the States would not be complacent and it was taking the main concerns raised by business owners “very seriously”.

“Many of the key concerns they highlight such as travel links, attracting skilled staff and housing are priorities for the States and issues we are actively addressing,” Mr Inder said.