Guernsey economy has diversified into different new service based areas of business. These include mainly financial services which have been made available to international investments, making Guernsey economy very attractive. Traditional sectors of the Guernsey economy such as horticulture, manufacturing and tourism have been experiencing some decline over the years.
Guernsey economy flourished under Guernsey offshore enterprise construction, similar to Belize companies registration, program, under which nonresidents were able to register companies in Guernsey and enjoy full tax exemption. offshore company formation is thus a major sector in Guernsey economy but has been impacted by demands made by the European Union to harmonize Guernsey’s tax system along with that of EU countries. The 0%-10% system which benefited Guernsey economy so much had to be changed for Guernsey to not be accused of harmful tax competition.
Guernsey economy as far as international financial services are concerned is however diversified and appealing for the high quality services available in insurance, fund management, banking and the incorporation of other special entities for international use and asset protection, such as Protected Cell Companies. Guernsey economy has been often described as that of an international financial center.
Guernsey economy has gained from the presence of a major Optical Group, which is based in various countries such as the Netherlands, Australia, Spain, the UK and Spain. The telecommunications sector of Guernsey economy is modernized and provides a series of services. Data centers are one of the areas of development of Guernsey economy, and are adding diversity to the economy of Guernsey.
Sound infrastructure and legal system are positive features of Guernsey economy. There is also a pool of skilled, educated professionals who are key to the Guernsey economic growth. The currency used in Guernsey economy is the Pound sterling, with Guernsey issuing its own coins and banknotes. UK legal tender from England, Northern Ireland and Scotland also circulated in Guernsey economy and exchanged 1:1.