Chief Minister Howard Quayle said he believed figures showing that the Manx economy went into recession in 2015 were a ’one off’ - and we are now back into growth.

He was speaking as the latest quarterly economic report shows signs for optimism, with the population and the number of people continuing to grow.

The quarterly report, produced by the Economic Affairs Unit of the Cabinet Office, says the island is ’performing well’, with prospects of further expansion across a number of sectors.

And it says the quality and diversity of the Manx economy is providing resilience, as well as new opportunities for workers, at a time of uncertainty in the UK and Europe over the impact of Brexit.

Earlier this month, figures for national income showed the Manx economy shrank for the first time in 32 years in 2015-16.

But Mr Quayle said: ’I believe it was a one-off. I’m confident we are back in growth.’

He said new regulations in 2015 had hit the e-Gaming industry whose profits were significantly down that year. There had also been a big market correction in the shipping industry with a number of Manx-registered ships sold at a loss.

But the latest report states that the outlook for the Manx economy is positive.

Employment went up 720 over the last 12 months, and up 400 in the last quarter alone, unemployment is down 250 and the total population is up 360 year on year - a turn round from the last census which showed the population fell between 2011 and 2016.

Total employment including those in jobs and the self-employed rose by 500 in the last year as there was a fall in the number who work for themselves.

’The challenge is still for government to identify and target the skilled workforce we need and to get them here before the jobs go elsewhere,’ says the report, citing the recent relaxation of work permit rules in certain sectors.

’Growth in employment from existing companies has driven the last few quarters but has done little to reduce underlying labour demand.’

Statistics point to strong jobs growth in the finance sector, with local banks recruiting for up to 100 new positions.

The island’s leading e-businesses are also taking on additional staff, while employment in the insurance industry is at its highest level for the past three years.

In addition, the unemployment rate in the construction sector is at an historic low, with just 40 people currently registered as out of work.

The report highlights ’a healthy and growing list of inward investment leads’ for the manufacturing and engineering industry, with the proposed Airport Technology Gateway project aimed at generating significant new business and jobs.

However, the report warns that the shortage of skilled workers in certain sectors could stifle business growth.

There is also concern that the first increase in interest rates by the Bank of England in 10 years could place further pressure on some households.

And it says the housing market remains subdued, with house prices showing a 2.2% fall.

It also says that earnings will fall in real terms.

The Chief Minister said: ’The latest economic report to the Council of Ministers confirms the island is moving in the right direction.’

Executive summary

Local employment remained up 720 on an annualised basis in Q3

Total population up 360 year on year. Under-65 growth up 120 year on year, with both similar to last year.

House prices showing larger fall (2.2%),

Inflation reduced, CPI 3.3%. Oil worry.

Unemployment down 250 year on year

Outlook

Inflation to stay between 3 and 4%

Employment still strong.

Housing market weak.

Earnings fall in real terms.

Interest rates likely to rise in November.