The South West is only one of two regions in England set to gain ground on London's economy over the next three years as the 海角视频 recovers from Covid-19, according to a new report.
Accountancy giant Ernst and Young (EY) has forecast the region鈥檚 economy, measured by the value of goods and services produced or Gross Value Added (GVA), to be 9% larger in 2025 than it was in 2019
This would give the South West the second-largest increase among English regions, behind only the East Midlands (9.5%) and ahead of London (8.9%).
The report said the rise was driven by Bristol, which was one of only two major cities 鈥 alongside Nottingham 鈥 to recover to pre-pandemic levels of economic activity by the end of 2021.
EY estimated in terms of GVA and employment the South West would have annual growth rates of 2.8% and 1% respectively from 2022 to 2025 - a similar pace to the rest of the country.
The region鈥檚 human health and social work sector was expected to post the largest increases in employment over the period.
The report said the South West鈥檚 economy had put in a 鈥渞esilient performance鈥, during the initial stages of the pandemic, with GVA only 2.5% lower by the end of 2021 than in 2019. By contrast, the national GVA was 3% lower and London鈥檚 was 3.6% lower.
Bristol鈥檚 GVA was expected to expand by 3.1% per year between 2022 and 2025 - the fastest rate of growth in the region.
EY has said the expansion is set to be supported by GVA growth in the real estate and profession, scientific and technical sectors. Employment in the city is forecast to grow at an average of 1.4% per year between 2022 and 2025.
After Bristol, EY said the fastest-growing locations in the South West were expected to be Torbay (2.8%), Stroud (2.8%), Exeter (2.7%), Taunton Deane (2.6%), Plymouth (2.3%) and Swindon (1.9%).
Despite the South West鈥檚 strong performance, and research showing the pandemic had helped to narrow the 海角视频鈥檚 regional economic divide, EY said it was expecting London to make up the ground lost to the rest of the country.
EY estimated the capital鈥檚 economy could also grow by just under 9% in terms of GVA by 2025 from 2019 levels, with a projected change in working-age population of +4.7%. The South West by comparison was projected to see a drop in its working-age population of -0.3%.
The report also predicted the economic gap between cities and towns could continue to widen, with England鈥檚 major cities expected to grow 2.9% per year by 2025, compared to forecast growth of 2.6% in towns.
Karen Kirkwood, office managing partner at EY in the South West, said while the pandemic had a "significant" economic impact on the region, its economy was 鈥渨ell placed鈥 for a recovery.
Ms Kirkwood said: 鈥淪ectors in which the region excels, such as accommodation and food services and the arts, entertainment and recreation are set to see particularly rapid growth over the next few years.
鈥淗owever, with the data showing London recovering from the pandemic more quickly than much of the rest of the of the country, action is needed to ensure the South West doesn鈥檛 get left behind in the long-term.
鈥淕reater flexibility on where people work, aided by the pandemic, could help this. Focusing on what attracts people and businesses to a region, attracting the right mix of sectors and job opportunities, and tackling issues that affect quality of life will be key to taking advantage of this.鈥
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