Mediaboss Marketing

04 June 2012

The Isle of Man's positive contribution to the global economy, and in particular to the City of London, has been examined a recent report from Ernst and Young.

The government-commissioned report aims to independently substantiate the benefits that international financial centres provide for advanced nations, and to the financial health of the global economy.

The report says that the United Kingdom, a key beneficiary of the Isle of Man's activities, for instance, benefited from USD38.9bn in net financing from Isle of Man sources during the second quarter of 2011, according to Bank of England statistics.

The report further finds evidence of the strong contribution the island makes to the UK's regional development, in particular in the North West where the Isle of Man Aerospace Cluster plays an important role in the growth of the UK's aerospace industry. The report found that the Isle of Man and the United Kingdom should maintain a symbiotic relationship in recognition of the Isle of Man economy's supportive role in balanced growth in the United Kingdom.

The report also recognizes the positive impact on global economic growth of highly-diversified, innovative economies, such as the Isle of Man. The report says: International Business Centres (IBCs) play a key role in contributing to investment, employment and growth in neighbouring countries in particular, and the global economy in general. The report goes on to suggest that the island has led the way amongst IBCs in establishing a modern regulatory system aligned to world best practice, with a conducive environment for strong economic productivity, through the island's internationally-recognized low-tax, and robustly-regulated regime.

Commenting on the Report, John Hopes, Partner at Ernst and Young said: The report demonstrates how the Isle of Man supports UK economys growth and its financial sector. This should not be underestimated. Our report clearly demonstrates the mutually beneficial relationship which exists between the Isle of Man and the UK. The strong economic partnerships between the Isle of Man and the North West, in particular, show the important role the island plays in stimulating growth. At a time when the UK is trying to rebalance its economy... these partnerships are of great importance to the UKs growth prospects.

Welcoming the report, Chief Minister Allan Bell, added: This report provides an objective view of the Isle of Mans economic strengths and the significant contribution we make to the global economy. It also emphasizes the islands vital role, particularly since the credit crunch of 2008, as a provider of financial flows to UK and international markets in three main areas: liquidity, listed companies and investment.

The rest is here:
IoM Plays Key Role For UK Economy