Manchester is forecast to be the strongest performing city in the UK outside of London in the next three yearsaccording to the latest Ernst and Young Regional Forecast released today.
The survey found that in terms of both GVA and employment growth, with annual increases of 2.4% and 1.2% per year respectively between 2017 and 2020.
However the survey found that that no progress has been made in rebalancing the UK economy geographically over the last three years and the economic divide between the North and South of the UK will continue to expand over the next three.
Of even more concern, the weaker parts of the economy,smaller cities and towns,will fall further behind the largest cities.
London and the South East will continue to outperform all other UK regions through to 2020 with Gross Value Added (GVA) growth per year averaging 2.2% and 2.0% respectively, compared to 1.79% for the wider UK.
London is also expected to enjoy the fastest increase in regional employment up to 2020, growing at an average of 0.8% per year.
Technology will be a key component of UK growth, with the ICT sector expected to achieve GVA growth of 3.5%. Manufacturing is also forecast grow by 1% over the same time period.
“The UK has to view geographic rebalancing as a key component to the process of transforming the economy. However the scale of the challenge should not be underestimated. With the requirements to prepare for Brexit, position for technological change and maintain its competitiveness, the UK needs to invest more than it has done for some time.” is the view of UK Chief Economist Mark Gregory
Strong performances in the professional, scientific and technical, administrative and support services and construction sectors will be key to driving Manchester’s economy says the report.