Member Article

Recession to least affect North East

The North East is forecast to be the least affected region in England as the economy enters into one of its toughest years since the Second World War.

The Centre for Economics and Business Research’s regional prospects report predicts that the region will move to the top of the rankings in 2009.

According to the CEBR, the North East will contract by 2.5% in 2009 and see an estimated 26,135 job losses. London meanwhile is forecast to be the worst affected part of the UK as its disproportionately high reliance on financial and business services will be particularly affected.

While the downturn will not spare any of the regions, CEBR now forecasts that GVA growth in the capital will decline by 3.4% this year, making it the worst performing region in the United Kingdom in 2009.

There will be an estimated 147,443 job losses in 2009 according to the CEBR.

Mark Pragnell, CEBR managing director, said: “The public sector will be the only growth industry in 2009. “While this means that some of the regions will be somewhat cushioned from the worst of the economic downturn, this will not save them from a major recession over the next year.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .