Community response to Covid helped economy - Treasury Minister

Treasury Minister, Alf Cannan MHK, says the community response to Covid-19 has helped keep the economy moving.

His comments come as an annual report into the Island's financial standing from international credit ratings agency, Moody's, noted the Isle of Man's resilience to the economic effects of the Coronavirus pandemic.

The report provides updated analysis of the Island’s economic and fiscal position and sees the Island’s credit rating downgraded, to Aa3 stable from Aa2 stable.

It mirrors the UK's recent downgrade, to Aa3 stable from Aa2 stable, with the report highlighting the ‘close and material institutional, economic and financial linkages between the two jurisdictions’.

Officials say Moody’s notes the Island’s high level of overall reserves and how institutions have been proactive and effective in dealing with external factors such as Brexit and the Covid-19 pandemic.

Meanwhile, technological or regulatory changes to key industries such as insurance, e-gaming, ICT or banking are regarded as a key challenge due to the concentration of activity in these areas.

Mr Cannan says: "The community’s response to the pandemic has enabled our economy to keep moving and for reserves to remain largely unaffected, despite a package of support measures put quickly in place as an immediate lifeline.

"A careful and prudent approach has placed us on a strong footing and the report acknowledges the Island is unlikely to experience the same economic scarring as elsewhere."