Leeds and Hull have seen contrasting fortunes in a report plotting economic growth over the next few years.
The latest EY latest Regional Economic Forecast says that the economy in Yorkshire and the Humber as a whole will continue to face challenges over the next three years, with the gap between the region and London expected to grow. The report says that the region’s economy is likely to grow 1.7% a year over the next three years, below the average rate of 1.9%.
That rate will be higher in Leeds at 1.9% but Hull is expected to see the region’s slowest economic growth from 2024-2027, with an annual average rate of 1.5%. Elsewhere, Doncaster, Wakefield and West Yorkshire Combined Authority are expected to have the joint-second fastest-growing economies across the region at 1.8% per year, while York, Sheffield and Bradford all have a 1.7% forecast.
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Stephen Church, EY’s North Market Leader, said: “The North is home to fantastic towns and cities, along with ambitious businesses and an abundance of talent. This means that the region will be well-placed to feel and contribute to the benefits of the UK’s return to economic growth over the next few years. Major cities including Newcastle, Leeds and Liverpool are once again expected to be a driving force for economic growth in the North and across the UK. Meanwhile, Manchester is poised to maintain its status as an economic powerhouse, fuelled in part by its flourishing tech sector.
“Nevertheless, it is important that locations across the North utilise their unique strengths to drive growth. There are still a significant number of places in the North expected to trail quite considerably behind national and regional averages both in terms of GVA and employment, highlighting room for improvement.
“Going forward, it is critical that the public and private sectors collaborate to maximise opportunities. Leaders and businesses in the North should prioritise building skills and capabilities that will be in demand across high-growth sectors, while making the most of our region’s fundamental strengths such as our industrial prowess in the North East and Yorkshire, and our technology expertise in the North West.”
EY said its forecast for the Yorkshire and Humber economy suggested a recovery in the coming years after the region’s economy saw an outright contraction of 0.1% in 2023. The region’s manufacturing, wholesale and retail trade and real estate sectors are expected to remain the leading contributors to GVA in Yorkshire and the Humber between now and 2027, with the construction, information and communication, and human health and social work sectors also expected to see significant growth over the period, it said.
Nationally, EY said that while all areas of the UK are set to see moderate economic growth over the next three years, London and the South of England were likely to outpace the rest of the country due to issues in the regional labour market and higher numbers of high growth companies in the capital.
Original artice – https://business-live.co.uk/all-about/yorkshire-humber
