The research by ONS shows how much money is generated through goods produced and services delivered, and some of the region's leading business leaders have praised the news.
In the past three years, the North East is one of just four regions along with Yorkshire and The Humber, East of England and London to have recorded increasing growth in successive years.
Speaking about the results, Jonathan Walker, NECC’s head of policy and campaigns, said: “The figures released today are extremely positive.
“The North East is doing well, but more must be done to ensure we keep up with, and benefit from, national increases in output and productivity.
“This remains a key challenge in the region and we must aspire to improve our output per head if we are to achieve our potential.
“Nevertheless, we are the fastest growing northern region and this undoubtedly shows how integral we are to the development of a Northern Powerhouse, something that must be recognised by government."
North East LEP chief economist, Chris Milne, added: “It’s encouraging that we’ve seen growth for the North East economy over the past few years, following the recessionary period.
“If we can sustain this growth, it will help us move towards our aims for more and better jobs for the region.
“We’ve seen strong growth in some of our key sectors, including those which support growth for the economy as a whole, such as business services and those that demonstrate investment is taking place, including construction.
"The shrinkage we’ve seen in the public sector has been more than compensated for by the growth of the private sector, which is excellent news.”
The regional GVA breakdown shows: Nationally, London recorded the biggest increase in GVA in 2014 with growth of 5.3% and Northern Ireland the lowest, at 1.9%. The ONS bases its calculations on income generated by individuals and businesses producing goods and services.
Nationally, London recorded the biggest increase in GVA in 2014 with growth of 5.3% and Northern Ireland the lowest, at 1.9%.
The ONS bases its calculations on income generated by individuals and businesses producing goods and services.