Guernsey Press

Islands perform well in response to pandemic

THE Channel Islands are better placed than many other jurisdictions in dealing with the ongoing fallout from the pandemic – although challenges remain to recovery.

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Martin Beck recently talked about Jersey and Guernsey’s outlook at a webinar. (Picture by Peter Frankland, 29207351)

That was the assessment of Martin Beck, EY’s senior economic adviser from Item Club at a webinar on Jersey and Guernsey’s outlook attended by more than 120 people from the two islands.

‘The Channel Islands have performed well internationally in responding to the public health challenge of Covid. But this has not left Jersey and Guernsey immune to the pandemic’s economic damage,’ said Mr Beck. ‘As the latest EY Item Club report sets out, the economies of the islands look to have suffered an unprecedented hit last year, and the risks around a hoped-for recovery this year are plentiful.

‘But the rollout of vaccines offers the prospect of some return to normality as 2021 progresses. Pent-up demand, high levels of households’ savings and a global economic rebound should all aid the Channel Islands in repairing Covid’s economic damage.’

He added: ‘The prospect of a slow recovery in tourism, headwinds to the financial sector from ultra-low interest rates and threats to the islands’ tax competitiveness mean economic recovery won’t be without its challenges. But the financial strength of Jersey and Guernsey suggests that, while the future is hardly lacking in risks and uncertainties, the Channel Islands should be better placed than many in dealing with them.’

Andrew Dann, EY’s Channel Islands managing partner, who hosted the webinar, said: ‘Whilst there are always uncertainties with forecasts, this year even more so than usual, early indications from the report suggests that the Channel Islands are faring relatively well.

‘Although both islands’ tourism and hospitality industries have been significantly impacted, the size of our financial sectors, which have the digital and remote working capabilities to quickly and efficiently adapt to change, have proved to be pivotal in protecting the local economies.

‘When participants on our webcast were asked how much of their additional savings they have accumulated during the crisis they would be likely to spend once restrictions began to lift, 60% said they would spend some, or most, of their extra savings, which is positive news for the islands’ economies as local businesses look to bounce back.’

Mr Beck has also been working alongside Item Club to produce a special report for the Channel Islands, exploring how they have been affected by the key events of the past year, namely Brexit and Covid, and their economic prospects over the coming year. The report is due to be released in early February.

EY’s ambition is to be carbon negative

FIGHTING climate change is vital to building a better world, the managing partner of EY in the Channel Islands has said.

Andrew Dann spoke after EY recently announced its ambition to be carbon negative in 2021 by setting targets to significantly reduce its absolute emissions and removing and offsetting more carbon than it emits.

‘We believe that combating climate change is a vital element of building a better working world. While this challenge is unique and different for each organisation, we are inspired by those that are setting ambitious targets despite the difficulties they face,’ he said.

‘Locally, we are delighted to have recently joined the ESI Monitor’s Environmental Business Operations Award to enable us to measure, manage and minimise our impact on the environment more closely and make positive changes to our environmental footprint on a local level.

‘Our people are passionate about tackling big challenges and with the power of 300,000 people in our global network, we will not only transform EY to become a leader in sustainability, but also help EY clients do the same.’