Report finds Guernsey spends less on public infrastructure than any OECD country

A new report on Guernsey's economy says that the island invests only a third of what is recommended on public projects and infrastructure.

An independent fiscal policy panel recommended that 3% of GDP - the value of everything a country produces - be put towards public investment.

Guernsey has currently set its own target of 2%, which it is currently falling short of.

The panel concluded that the amount of investment in public projects was "lower than any OECD economy".

The OECD, or the Organisation for Economic Co-operation and Development, is a group of 39 developed countries including France, the United Kingdom and the United States.

The report concluded that Guernsey was "no longer on a sustainable fiscal path" based on the value of its assets and levels of investment.

"The most significant fiscal problem is the low level of public investment and the longer-term implications this has for public infrastructure" read the report.

It also cast a critical eye on the island's imminent budget saying that "none" of the scenarios it outlined were enough to put the island's finances back on track long term.

A number of other observations were made in the report, including that Guernsey's ageing population will put increasing strain on healthcare and pensions.

The report arrives amid a debate over whether a controversial good and services tax, GST, could be introduced in Guernsey.

Politicians are due to make a number of announcements about taxes and the island's financial future in the upcoming budget.

Also known as the funding and investment plan, its full details will be unveiled on Tuesday 10 October.

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