New figures show the economy of Jersey, one of the Island's foremost rivals in financial services business, has shrunk for the fifth year in a row.
But Chief Minister Allan Bell says the Isle of Man must not become complacent.
A 4% decline in Jersey's 2012 GVA index of economic activiity puts the Channel Island in its worst position since the mid-1990's.
In comparison, the Isle of Man is expecting to see 4% growth for the same period.
Mr Bell says while the Island works closely with other Crown Dependencies in many areas, the offshore jurisdictions are still in competition economically.
The Chief Minister says the Island must work hard to retain the advantage: