Member Article

North East sees positve GVA growth

Latest GVA statistics show that North East business is performing well, despite difficult economic conditions.

In 2010, the North East GVA was £41 billion, a 3.8% increase on 2009 compared to the UK as a whole.

While North East GVA per head is lower than the national average of £20,974 at £15,744, it has shown an increase of 2.9%, compared to 2.4% across the UK. The North East’s per head index is 76.9, in comparison to the UK-wide figure of 100. This is the lowest in the whole of England.

Chief executive of the North East Chamber of Commerce James Ramsbotham was encouraged by the statistics, which contradict the assumption that the North East has performed since the recession than other regions.

He commented: “These numbers illustrate the North East’s capacity for further development and with fresh investment in specific areas of the region’s infrastructure we could be doing so much more for UK PLC.

“If the Government is to be taken seriously on its pledge to re-balance the UK economy and address disparities in wealth between the regions, then much more radical action than has been seen to date is required.”

Nonetheless he did acknowledge that there is still much to be done to counteract the impact of cuts on the regional economy.

Mr Ramsbotham added: “The region’s capacity for additional growth is also evident in today’s labour market figures.

“While the gap has narrowed slightly between the North East and the rest of the country, unemployment levels and youth unemployment continue to follow an increasingly worrying trend.”

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