Richard Digard was guest speaker at the Chamber of Commerce's monthly lunch, which was attended by more than 100 people.
He said the island could and must do better.
'I'm optimistic for the future of Guernsey if the island wakes up, opens its eyes, acknowledges that the future is very rocky and embraces that and it is prepared to make some very difficult decisions,' he said.
'If we can get our minds into the right place then, yes, I think we can do it. But at the moment it is not looking that clever.'
Mr Digard, who has been editor at the Guernsey Press for 14 years, said the belief that Guernsey could improve was what had motivated him over the years.
'That and the fact that you don't have to look very hard – unless you are one of those inside the tent – to see where the improvements are needed,' he said.
Mr Digard also spoke about his concerns about the island not having an executive form of government, following on from the 'debacle' of the 2004 reforms.
The 2004 Harwood Report into the machinery of government was a result of the newspaper, the Chamber of Commerce, business groups and the then Transport Union lobbying for change, he said.
But Mr Digard said the report was so emasculated that the island was still paying the price as most of the key elements were removed.
