Production in the North East economy as measured by current Gross Value Added increased by 1.7% in 2012, just above the UK average of 1.6% according to newly-published figures from the Office of National Statistics.
However, 2012 production per head in the North East grew at twice the rate of London and the West Midlands, and was third highest amongst the English regions.
Economic growth for the North East Local Enterprise Partnership area of County Durham, Northumberland and Tyne and Wear is even more impressive. GVA per head in the North East LEP area increased by 2% – beaten only by the South East amongst all English regions.
Paul Woolston, chair of the North East LEP said:
“Since 2010, the North East LEP’s GVA per head has grown faster than England’s in each year, averaging a rate of 2.7%.
“This average is not just higher than England, but higher than any English region, suggesting that the excellent figures for 2012 are not a one-off and the North East is a great place to do business. However, total levels of production and employment remain substantially lower than the UK average, reinforcing the core message of the Adonis review that we continue to need more and better jobs in the North East.
“The LEP is playing its role helping the North East economy maintain momentum. Working with our partners, we have already created or safeguarded thousands of jobs through the North East Enterprise Zones, given support for major developments and improved access to finance for SMEs.
“The impact of this focused activity is boosting regional growth and confidence. It’s good news – but there’s still a long way to go to achieve our aims. Working collaboratively with our partners across public, private, higher and further education sectors will speed our continued growth in the years to come and help us close the employment gap. ”
Councillor Simon Henig, chair of the North East Leadership Board and Leader of Durham County Council said:
“The figures show that the North East economy is growing, and this will lead to new opportunities for local people and investors to work and live in our region. However there is still much work to do and we need to carry on working together to narrow the gaps that still exist in employment and economic vitality.”
Further information from Christine Holland, Holland PR and Marketing Ltd Tel 01670 790246 or 07711 698246.
NOTES TO EDITORS
Gross Value Added (GVA) is a measure of the increase in the value of the economy due to the production of goods and services. It is measured at current basic prices, which include the effect of inflation, excluding taxes (less subsidies) on products (for example Value Added Tax). GVA plus taxes (less subsidies) on products is equivalent to Gross Domestic Product (GDP).