The Institute of Directors Jersey has released the findings of its second economic confidence survey, offering a timely snapshot of business sentiment across the island.
Conducted between 9 and 30 June 2025, the survey gathered insights from 70 members across all sectors, representing 8% of the IoD Jersey membership.
The results reveal a striking divergence in confidence levels: while 56% of respondents are optimistic about their own organisations, only 17% express optimism about the broader Jersey economy. This net confidence gap of -33 for the economy versus +40 for individual organisations underscores a cautious outlook on macroeconomic conditions despite internal business resilience.
Key Findings:
- Top priorities for growth: Respondents identified infrastructure investment, attracting new industries, and housing affordability as the most critical levers for stimulating economic growth. These align closely with the views of IoD Guernsey members, who also further emphasised connectivity and diversification.
- Fiscal deficit strategies: The most supported approaches to reducing Jersey’s fiscal deficit include reducing public sector spending, collaborating with Guernsey, and driving economic growth.
- Entrepreneurship drivers: To foster innovation, respondents highlighted the need for tax incentives, youth talent attraction, and technical skills development. Access to funding and mentoring were also seen as important.
- Innovation and AI adoption: While most businesses are in the early stages of AI adoption, one-third have an AI strategy in development, and over 70% offer AI training. Key goals include improving efficiency, data analytics, and customer experience. Challenges include lack of expertise, resistance to change, and cost.
The Comparative Confidence Index shows:
- Jersey: -33.8 (economy), +40.0 (own organisation)
- Guernsey: -11.0 (economy), +42.0 (own organisation)
- UK: -53.0 (economy), +3.0 (own organisation)
These figures place Jersey between Guernsey and the UK in terms of economic confidence, with local businesses showing notable resilience despite broader concerns.
Alex Ruddy, IoD Jersey Chair Alex commented: “This survey provides a clear mandate for action. While our members are confident in their own organisations, they are calling for bold, strategic investment and policy clarity to restore wider economic confidence. Collaboration across the Channel Islands, support for innovation, and a focus on infrastructure and housing are essential to Jersey’s future prosperity. Many of the initiatives IoD Jersey is working on at the moment with members, the wider industry and policymakers are aimed at targeting the problem statements and ensuring the sustainability of businesses and the island.
“Both IoD branches in the Channel Islands have been engaging more closely and hope to see this replicated with our political leaders.”
Richard Hemans (pictured), IoD Guernsey’s lead on economics commented: “Looking across the pond, there are three things that strike me following IoD Jersey’s latest Economic Confidence Survey. Firstly, Guernsey’s stronger confidence in its economy over the next 12 months compared with Jersey is in stark contrast to local perceptions in Guernsey that Jersey’s economy is more robust and resilient. Secondly, the same solutions are repeated across both islands in relation to stimulating economic growth, closing the fiscal deficit and encouraging entrepreneurship and innovation. Thirdly, and in my view most importantly, there is clear recognition from the business community in both islands that given the same challenges apply to both islands and our economic, geographical, demographic, constitutional and fiscal profile is so similar, the best way to confront our mutual challenges is to work together more closely. Politicians in both islands should heed this unequivocal feedback.”
