The latest ‘EY UK region and city economic forecast’ ranks Yorkshire as the joint seventh fastest growing region in terms of GVA up until 2018 with Leeds leading the way.
Of the cities analysed, Leeds will be the second fastest growing city outside of the South of England, behind Manchester at 2.5%.
Leeds is predicted to record GVA expansion of 2.3% a year– matching the UK average and outpacing the Yorkshire region thanks to expansion in its information and communications, administration and support, and professional services sectors.
Financial services will account for 8% of GVA in Leeds in 2015, exceeding the national average. This sector is expected to grow at around 2% per annum in the next three years compared to an average annual decline of 2% in the last three years.
Stuart Watson, Yorkshire senior partner at EY, said: “We predict that Leeds will be the second fastest growing city outside of the South over the coming years, which is testament to its focus on higher value service-based industries.
“Leeds is beginning to carve its own competitive position within the UK thanks to clearer economic focus. This is something Manchester – the fastest growing city outside of the South – has done to good effect through its research, commercial and infrastructure agenda, and points to the opportunity for other cities outside of the South of England to make their mark.”
Elsewhere in Yorkshire, Hull will see GVA growth of 1.6% a year over the next three years, with employment expansion of 0.3%.
Reading (3.1% GVA per year) is expected to be the UK’s fastest growing city over the next three years, outpacing even the capital.