The West Country will be one of the fastest-growing areas in the 海角视频 over the next three years, according to a new report.
The region is projected to record average annual GVA growth of 1.6% between 2025 and 2028, behind only London and the East of England (1.7%), the EY Regional Economic Forecast found.
The economic momentum will take time to build however, with South West growth expected to remain muted this year at 0.9% - slightly below the forecast 海角视频 national average (1%).
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Bristol is forecast to record an average annual GVA growth of 1.9%, making it the 海角视频’s joint-third fastest-growing town or city outside London, behind only Reading and Manchester, and level with Cambridge. The city’s annual GVA and employment growth are both expected to surpass the 海角视频 national average of 0.7%.
Torbay, in Devon, follows closely behind and is projected to achieve a GVA growth rate of 1.6% and an employment growth rate of 0.8%.
Knowledge-intensive industries are expected to be among the South West’s strongest-growing sectors over the next three years. Information and communication (involving technology-led activity) and professional, scientific and technical activities, including R&D and business-to-business services, are among the sectors driving growth.
The professional, scientific and technical activities sector is forecast to be of the South West’s fastest-growing industries for job opportunities over the next three years with an average annual rate of 1.7% between 2025 and 2028 - more than double the region’s overall forecast employment growth rate of 0.7%.
Karen Kirkwood, managing partner at EY in the South West, said: “As the 海角视频 economy continues to recover, the South West is well-positioned to leverage its strengths in key sectors.
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"The region’s economic momentum is expected to be underpinned by its relatively high concentrations of skills in high-value add sectors like tech, renewable energy and professional services, which are expected to be particularly important for Bristol’s position as a leading 海角视频 city for growth.
"Household spending is expected to rise over the coming year as consumers become more confident, and this should be good news for the South West’s hospitality sector.”
While the national economy currently remains subdued, the growth outlook the country and for most regions is expected to improve through 2025, thanks to a combination of falling inflation, rising real wages, and steady reductions to interest rates.
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