The Jersey Economic Digest - the first of its kind - pulls together economic statistics from 2004 and compares them with previous years.

Stable house prices and a falling underlying rate of inflation are being cited as evidence of a turnaround in the island's fortunes.

But States economic adviser Dougie Peedle warned that could all be upset by problems in the global economy.

Confidence loss

He said: "I think the key risk is what happens in the US.

"There is a danger there that significant current account deficits and to some extent budget deficits could lead to a loss in confidence.

"People could start pulling money out of the US and that could feed through into exchange rates and undermine the dollar."

In future, a report on Jersey's economic outlook will be released just before Christmas every year.