In the Department of Economic Development’s ‘Vision 2020’ strategy document the financial sector is predicted to contribute 7% less to the island’s GDP in comparison to other wealth creating sectors, from just under two thirds (65%) in 2010 to 58% in 2020.
Emerging sectors, such as e-business, will leap from 25% of GDP to 33% over the same period, while other established sectors will contribute more too, from 9% to 10%.
The report focuses on eight economic sectors with the stated goal of growing the island’s economy by 3% to 4% a year in real terms over the next six years.
But it also highlighted that, while financial services and professional services will remain the largest wealth generating economic sector for the Isle of Man, adding just over £50m to Government income in 2020, there will be changes.
“Banking and some elements of traditional financial services will contract as global businesses rationalise and international transparency standards are widely implemented,” said the report.
The move to global transparency will “reduce the size of the offshore market in real terms” though the demand for international security and professional services will remain strong, it said.
As a consequence, the financial sector employment on the island will fall from 62% to 53% by 2020.
Chief minister Allan Bell said in the foreword that 'Vision 2020' research showed there was
potential for fresh development across a broad range of sectors, from financial services to local food and from ICT to offshore energy.
“But as many more countries, large and small, are now looking for the same sort of opportunities, there is tough competition in most of these markets,” he said.
No in-depth details of the strategy, which was drawn up in conjunction with the private sector, will be published to avoid giving competing jurisdictions an insight into the Manx government’s thinking, the Manx Independent reported.
Click here to view the Vision 2020 report.
