New Report Also Sounds Warning Regarding The North East’s Future
Sunderland had one of the fastest growing city economies in the UK in the final months of last year, according to new research which also reveals how the area is vastly outperforming rival cities in the North East.
The UK Powerhouse study is produced by Irwin Mitchell and the Centre for Economics and Business Research (Cebr) and provides an estimate of GVA* growth and job creation within 45 of the UK’s largest cities 12 months ahead of the Government’s official figures.
Published this month, the latest report revealed that Sunderland enjoyed year-on-year GVA growth of 1.5% across the fourth quarter of 2017, which made it the sixth best performing city in the UK over the period analysed.
In contrast, Newcastle recorded GVA growth of 1.1% across the quarter, while Middlesbrough’s rate of 0.8% put them among the worst performing areas.
Looking ahead to the near and long-term future, the report sadly hinted that all three of the North East’s major cities are likely to struggle in the coming years. By Q4 2028 it is expected that growth in Sunderland will have slowed to 0.7%, with Newcastle and Middlesbrough predicted to record rates of 0.6% and 0.3% respectively.
Employment growth across each of the areas is also expected to slow to 0.3% in the next decade.
Expert Opinion“Our report highlights that the faster rates of economic growth continue to be concentrated in locations in the South and around the so-called ‘Cambridge-Milton Keynes-Oxford Arc’. All businesses need to operate in an economic environment that allows them to flourish and we firmly believe the government can do more.” Victoria Brackett - Group Chief Commercial Officer
* Gross value added – the total value of goods and services produced.