PROJECTIONS for economic growth in the island next year have been downgraded in the light of the eurozone crisis.

The States was expecting the first significant rise in the island’s GDP since 2008 in 2012, with growth in the region of 1.5% anticipated this year. Now projections for next year have been revised from 3.5% growth to less than 2%.

States economist Andy Sloan said that continuing headlines about the eurozone debt crisis were impossible to ignore.

‘In the first half of the year Guernsey’s economy was clearly growing. We’d seen the evidence that wages were rising across both the finance and non-finance sectors, but no doubt confidence will have taken a bit of a knock. It’s impossible to be immune to the perpetual bad news from Europe. Such uncertainty is unwelcome, people and firms become more cautious and spending plans get put on hold.’