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Economy

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The success of our economy lies at the root of all else that matters for Gibraltar; our ability to protect ourselves and advance politically, our ability to enjoy a high standard of living, quality, modern and free public services and living environment; our ability to provide for the vulnerable members of our society; and our ability to assure a safe and prosperous future for our children, grandchildren and future generations of Gibraltarians.

The purpose of GSD's economic policy is twofold: to create jobs and to generate revenue for the Government to enable it to pay for public services, public investments and social benefits. In both respects the GSD Government’s economic policy has been hugely successful, generating record numbers of jobs and government revenue. As a result Gibraltar has also been able to advance and prosper politically, as well as socially and environmentally.

The Gibraltar economy has very nearly TREBLED in size since 1996! The economy now hosts 20,975 jobs compared to 12,975 in 1996, that is an increase of 8000 jobs (or 61%)! There have NEVER BEEN MORE GIBRALTARIANS IN JOBS THAN NOW! An increase in 1316 or 14% since 1996! 9390 in 1996, 10706 now. Take home pay has risen 90% while inflation has only been 37%. The Government has produced over £200 million in budget surpluses and has invested over £650 million in capital projects for Gibraltar and its future. Yet the tax burden on individuals has fallen by over 50% and public borrowing remains below 25% of GDP. Our economy continues to prosper even as so very many other countries suffer severe economic difficulties due to the global crisis. Our Government budget is one of the very few in Europe that remains in surplus despite the global recession and financial crisis.

As the figures quoted show, the economy has been hugely successful under the GSD Government and this has enabled the Government to hugely increase investment in our city, our infrastructure and amenities and in our public services (spending in care services has increased sevenfold, and in healthcare has trebled under the GSD). It has also allowed the GSD Government to create a record number of jobs for our people, to greatly lower personal and business tax, to increase peoples disposable incomes and thus to greatly improve peoples’ standards of living.

The GSD has not just been successful at creating a prosperous economy it has also been successful in distributing the fruits of that economic success to ensure that the WHOLE community benefits from it.

This has been done not just by creating many more jobs, and raising pay and minimum wages, and raising pensions and social benefit, but also in the following four key ways that are the core to the GSD’s wealth distribution policy:

1. 1) Cutting everyone’s taxes very significantly, and targeting extra tax cuts on the lowest paid;

2. 2) Investing in our city, our infrastructure and our public amenities for today and also to ensure that our children, grandchildren and future generations also enjoy a prosperous Gibraltar;

3. 3) Improving, modernising and expanding our public services;

4. 4) Maintaining prudent public finances.

The key to our economic success has been the focus on high standards and on enhancing Gibraltar’s international reputation in all the main areas of our economic activity: financial services, shipping, online gaming, tourism. In each of them we have been able to carve out for Gibraltar a global or regional leadership position or a high international reputation. At the same time we have reduced business tax and import duties sharply to help our retail and wholesale sectors to be more price competitive and thus stimulate local demand.