House sales fall 'but it's no recession'

THE number of property sales has tumbled by more than a quarter in the first six months of this year. But Chief Minister Lyndon Trott yesterday rejected the suggestion that indicated the island was on the verge of a recession.

'Guernsey's economy has continued to perform strongly throughout 2008,' said Deputy Trott.

'It remains regrettable that inflationary pressures persist on the back of high fuel and food prices, but Guernsey's primary industry is performing strongly. Unemployment remains very low but there is never any room for complacency.'

Deputy Trott pointed to the fact that deposits and funds under management had grown by more than £35bn. in the first quarter of this year as a sign that Guernsey's economy was still healthy.

He added that income tax receipts through the ETI system had also risen sharply after taking inflation into account.