ABSTRACT
This chapter describes the Jersey as a small island territory that has adapted to changing circumstances over many centuries and the most successful small international finance centers in the world. However, a substantial proportion of gross value added (GVA) is made up of finance-sector profits, which declined by about 30" over the economic cycle, so the compound annual growth rate for the entire economy was 0.1". In the banking subsector, there has been a significant fall in productivity of around 6" per annum since 2000. With regard to Jersey's finance industry, it is necessary to give further consideration to the current challenges facing the industry. Whereas, the authorities have frequently stressed the importance of economic diversification in Jersey in the pursuit of sustained economic growth. To conclude on an optimistic note, however, in recent years, there have been new developments in Jersey that could unleash important productivity gains.
