Business News

Regional economy continues to make good progress, says RDA
The latest Government figures for 2006 show that South West England’s productivity is on the rise.

The South West is closing the gap on its counterparts in other regions, edging closer to Scotland and the East of England.  Taking into account figures from previous years, South West England’s economy is tending to grow faster than the UK average, meaning that the region improved its income per person.

The total income in South West England reached £90bn in 2006, a rise of 5.4 per cent on 2005. This figure is divided by the number of residents in South West England to arrive at a measure of productivity (known as Gross Value Added per head, or GVA). GVA per head is then used to compare the region’s performance with others and shows the South West has been doing relatively well recently.  The region recorded a 4.7 per cent increase from 2005 in relative productivity.

According to data released by the Office for National Statistics, South West England’s relative economic growth has been advancing steadily since the lull in the late 1990s, with the region’s position on GVA per head higher in 2006 than in any year within memory.  The figures put the region only 6.2 per cent behind the UK average: an average that is heavily distorted upwards by London.  Without London, South West England ranked third of the eight English regions and was just above average in 2006.

Nigel Jump, chief economist at the South West RDA, said: “In a world of increasing globalisation and climate change, we need to focus the balance of our economy on making greater gains in productivity relative to the increase in the number of jobs. That means investing in skills and innovation and trading on our competitive advantage, such as the environment.

“Innovation, skills and the environment are the three key elements to competing in this global economy, areas where the South West RDA and its partners are focusing attention to unlock business potential.  I’m encouraged that the latest statistics show we have been moving in the right direction, giving us a foundation to raise our game further,” said Mr Jump.

Current survey and anecdotal evidence suggests that 2007 has also been a good year in terms of regional economic performance, though growth may slow again in 2008.

 

 

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Coventry, Croydon,