Yorkshire and Humber to have fastest economic growth in 2016

Yorkshire and Humber are set to have the fastest economic growth in the UK in 2016, according to EY’s UK Region and City economic forecast.

The forecast showed that Yorkshire and Humber is expected to have a gross value added (GVA) growth of 2.5 per cent in 2016, up from the predicted average growth of 2 per cent GVA.

Reduction

The forecast also revealed the sectors that have been contributing to the region’s growth this year, with financial services, logistics, real estate, construction and manufacturing all being found to have had a faster growth rate than the UK average outside London.

London is set to become the fastest-growing region in the UK in 2016, with a growth rate of 3.2 per cent, followed by the South East at 2.9 per cent.

Despite some regions showing growth, it is predicted that there will be a reduction in growth rates throughout the UK over the next few years. Yorkshire and Humber is predicted to see a growth of 1.3 per cent from 2016 to 2019; this is lower than the UK’s average growth rate of 1.5 per cent.

However, employment levels are expected to rise in the region, with a predicted increase of 1.7 per cent by the end of the year; this is higher than the UK average of 1.1 per cent.

Challenges

EY Chief Economist, Mark Gregory, stated: “The Yorkshire and Humber region is doing relatively well in terms of its current and expected economic performance over the next three years, but our forecast shows that none of the UK’s region’s or cities will be immune to slower economic growth as the UK economy faces a number of challenges in the short to medium-term.”