But the good news for the island is that the business community is far more optimistic about local prospects than they are in the UK or Jersey.
The Guernsey branch of the Institute of Directors’ latest Directors’ Economic Confidence Survey shows that there has been little change in confidence in the island’s economy with a net reading of -12% compared to -11% in May this year.
The figures for the UK are -73% and in Jersey it is -34%.
The survey results has also shown shifts in the challenges local business say they are facing.
Air and sea links were identified as concerns for nearly half of respondents, with housing costs and availability, as well as the cost of labour, coming in as joint second priority issues.
‘This latest survey shows that while confidence in Guernsey’s economy remains below desired levels, directors are becoming increasingly optimistic about investment, revenue and profit prospects.
However, they continue to face significant structural challenges, particularly around connectivity, labour and housing,’ said Richard Hemans, economic lead for the IoD Guernsey Branch.
Uncertainty over tax reform is also a concern following the ongoing debate on how to address Guernsey’s fiscal deficit.
Mr Hemans said that respondents sent a clear message to the States, with calls to prioritise spending restraint, plans for economic growth, a review of public services and closer working with Jersey before introducing or increasing taxes.
If new taxation is needed, GST appeared to be the favoured option of respondents, ahead of corporate and income tax.
‘The comparative strength of Guernsey’s confidence levels against the UK and Jersey demonstrates the underlying resilience of our business community but also highlights the importance of maintaining our competitiveness,’ Mr Hemans added.
The survey reports ‘net confidence’ scores, which are calculated by subtracting the percentage of respondents who expect conditions to worsen from the percentage who expect them to improve. Scores can be either positive or negative.