Average incomes in Guernsey have fallen by 12% in real terms over the past five years, according to the results of the 2023/24 Household Expenditure Survey. The survey, which gathered responses from over 2,000 individuals, analyzed the cost of living on the island.
While the average gross income, before taxes and deductions, increased by 12% in nominal terms to £77,619 annually compared to the 2018/19 period, this rise was offset by inflation. Once adjusted for the rising cost of living, the real value of incomes has decreased by the same percentage point.
The survey also found that average expenditure, which stood at £67,411 per year in 2023/24, was 6% lower in real terms than in 2018/19. This decrease occurred despite a nominal increase of 19% in spending over the same period.
After accounting for income tax, social insurance contributions, and other financial resources such as savings or loans, the estimated average money available for household expenditure was calculated to be £69,067 per year. The findings highlight the impact of inflation on the purchasing power of residents.