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Lower growth forecast in Moody's report

Number of Island finance challenges identified

Credit rating firm Moody's says the Island is 'more diverse and less volatile' than other offshore centres - but warns Brexit presents a 'key challenge' to growth.

The latest report by the agency's analysts points to a complete lack of direct national debt; an economic picture matched only by the Chinese territory of Macau.

Its authors praise a 'prudent approach' to government finances, and a recent focus on high-growth sectors such as ICT and e-Gaming.

But there are also stark warnings - it's said the loss of shared revenues with the UK significantly reduced the Island's financial strength.

It's also said we have a 'limited' bargaining power with other jurisdictions seeking to clamp down on global tax evasion.

Finally, the direct repercussions of leaving the European Union could lead to 'weaker growth'; forecast to fall to around 3% for the next two years.

Figures released earlier this week showed the Island's GDP grew by 5% last year - the thirty-second year of unhampered growth.

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