The RBS Regional Growth Tracker has revealed 2014 was a year of growth for regions throughout the 海角视频, although it slowed somewhat during the final quarter.
Despite the slowdown, economists at the bank estimated growth for many regions was at or above their historical average.
Overall the bank said with labour markets continuing to heal across the country, 2014 should be chalked up as a success for the 海角视频’s regional economies.
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London continued to set the pace with growth of 3.7 per cent, driven by its large professional services and information and communications technology sectors, while the North West (3.1 per cent) and the East Midlands (3 per cent) were the second and third fastest growing regional economies in 2014.
West Midlands growth was estimated as being 2.5 per cent for 2014 and 0.3 per cent for the fourth quarter of the year.
The top three areas for growth in the region were Herefordshire, Worcestershire and Warwickshire
RBS economist Sebastian Burnside said: “The West Midlands ended 2014 on a high note with growth hitting its trend rate of 2.5 per cent. And that growth is leading to jobs.
“The West Midlands has seen the biggest fall in unemployment of any 海角视频 region over the last 12 months, down almost two per cent to 6.3 per cent.
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“Employment is rising across many sectors of the economy with hotels and restaurants and business services doing well.
“But with tensions rising in Europe and a slowdown in far Eastern markets it will be tough to see a repeat of 2014’s export success story.
“Lower oil prices should put more money in the pockets of domestic consumers and help prop up demand at home.”
RBS regional director Andy Mitchell said: “Automotive, advanced manufacturing, leisure and consumer industries, continued to perform strongly in the West Midlands.
“Growth was strongest in the second half of last year, after many businesses decided to implement their strategic plans, having determined market conditions were sufficiently favourable for them to invest in their own expansion.
“We also saw confidence return among the small medium enterprise community as shown by its increased lending appetite.
“Companies in general have increased their capital expenditure, including acquiring new and enlarged premises to meet their growing order books. They therefore have more working capital demands. Mergers and acquisitions have also returned to the corporate agenda.
“There has also been strong foreign direct investment into the West Midlands and this is contributing to an entrepreneurial start-up market. On the whole, the medium-term outlook remains positive for the West Midlands.”