The treasury minister has responded to newly published national income figures showing the Isle of Man’s economy has contracted in real terms for a second consecutive year, warning against relying on GDP alone as a measure of economic health.

The comments from Alex Allinson come after the latest National Income Report showed inflation-adjusted Gross Domestic Product had fallen for two successive years, highlighting a prolonged economic slump.

In October, Dr Allinson had said there was “no evidence” the Island was in recession.

The new figures were released in the same week that Chief Minister Alfred Cannan said he was working with Treasury and the Department for Enterprise to restore confidence in the economy, suggesting concerns were based "more on sentiment than evidence".