City To Add Almost 10,000 New Jobs By The End Of Next Year
The growth of Bristol’s economy is expected to slow down by the end of 2023 but it is still expected to expand by £500 million and add almost 10,000 new jobs - according to a new business report.
The UK Powerhouse study, which has been produced by Irwin Mitchell and the Centre for Economics & Business Research (Cebr), analyses 50 of the largest local economies by employment and GVA growth.
In the latest report, Bristol is predicted to see year-on-year GVA growth of 2% in Q4 2023 with the value of its economy growing to £14.7bn.
The report highlights that Bristol’s 18th position for GVA growth in Q4 2023 growth represents a slowdown compared to how city was performing in Q4 2021. At the end of last year Bristol was in 8th position with an annual increase of 6.9%.
The report did however highlight improved fortunes in terms of job creation. At the end of last year the report says Bristol’s growth in employment was flat-lining at 0%. It predicts now however that year-on-year growth in employment levels at the end of next year for Bristol of 1.2% - equating to 9,700 more newly filled positions.
The UK Powerhouse report also examines the latest trends in Foreign Direct Investment into the UK.
Although both London and the South East have seen a 23% annual dip in the number of FDI projects in 2020/21, the vast majority of investment during 2020/21 was in these locations.
The report says the dominance of London and the South East when it comes to FDI levels contributes to the continued contrast in economic outcomes between the South and the rest of the UK.
Bryan Bletso, Partner and head of International at Irwin Mitchell, said: “FDI brings potential for higher productivity and improved economic output for many years into the future. There are signs that despite a fall in the number of projects last year compared to the previous 12 months, more recent data from the United Nations points to a strong recent recovery.
“We are certainly seeing some encouraging signs with an increase in enquiries from organisations looking to invest here and as a national firm we seeing FDI activities spread across much of our national footprint.
“I’m optimistic that levels of FDI into the UK will increase and from a levelling up point of view, it is important that it doesn’t become concentrated in locations which are already growing quickly. The whole of the UK has a lot to offer and the regions which benefit most from investment from abroad are likely to see more growth and job creation in the coming years.”
Josie Dent, Managing Economist at Cebr and one of the report’s authors, said: “The economy is still expected to face some turbulence between now and the end of next year, notably through volatility in commodity prices, supply chain pressures, and the emerging cost-of-living crisis domestically. All of these factors are set to impact growth both at the aggregate level and, to a varying extent, within individual cities.
“This report highlights that much of the fastest growth during next year will be concentrated in the South. Locations such as Milton Keyes, Cambridge and Oxford have economies which are dominated by fast-growth sectors and they have also been hot spots for overseas’ investment. If economic levelling up is to be tackled effectively, these two issues must be recognised and quickly addressed.”