Member Article

Growth of North East economy outstrips national average

Growth in the North East economy has outpaced the UK average, according to Gross Value added statistics.

North East workplace-based GVA in 2012 was £41.9 billion - an increase of 1.7% on 2011, compared to a UK increase of 1.6%.

Despite the rise, the region continued to lag behind its counterparts. North East workplace based GVA per head was £16,091 compared to a UK average of £21,295.

Within the North East, Darlington came top with a GVA per head of just over £20k, while Northumberland was bottom with a GVA per head of just over £12k.

Nationally, the South East and London dominated: London’s GVA per head was £37,232 and in the South East it was £23,221.

Among the regions, the North West successfully grew GVA per head the most at 1.7%.

Regional GVA per head UK map 2012

Source: Office for National Statistics

NECC director of Policy, Ross Smith, said: “The North East saw growth well above the national average, which is a good indicator that we are catching up with the rest of the UK after some incredibly tough years.

“For our businesses to accomplish this growth when our region has suffered more than most through public sector cuts is a fantastic achievement and our own Quarterly Economic Surveys suggest this positive trend has improved further throughout 2013.

“For a long time NECC has called for more support for us to realise our undoubted economic potential and contribute more to UK Plc. This is evidence that if we receive that backing from the Government we will deliver. With the major infrastructure projects planned across the region over the next two years, I can only see us closing the gap between ourselves and the rest of the UK even more.”

This was posted in Bdaily's Members' News section by Tom Keighley .