South West poised to be UK’s joint second fastest-growing regional economy over next 3 years
According to the EY Regional Economic Forecast, the South West (along with the South East and Northern Ireland) is set to be the joint second fastest-growing regional economy in the UK between 2025 and 2028. It is projected to achieve average annual GVA growth of 1.6% - just 0.1% lower than London and East of England (which are predicted to be the joint top fastest growing regions).
For more detail on this subject please read the bulletin below which was issued by Insider Media today.
Roger Mundy, Managing Director, Beardsley Theobalds, 20th March 2025
South West poised to be UK’s joint second fastest-growing regional economy over next three years - EY
The South West is poised to be the UK's second fastest-growing regional economy over the next three years, according to the EY Regional Economic Forecast.
EY said the region is set to return to moderate growth over the coming years, matching the South East and Northern Ireland as the UK’s joint-second fastest growing regional economy
The South West, alongside the South East and Northern Ireland, is projected to record average annual GVA growth of 1.6 per cent between 2025 and 2028, level with the UK average and behind only London and the East of England, which are forecast to average annual GVA growth of 1.7 per cent.
However, this economic momentum will take time to build and the South West’s growth is expected to remain muted in 2025, with 0.9 per cent GVA growth forecast in the region over the next 12 months, slightly below the forecast UK national average (1 per cent).
Bristol is forecast to record an average annual GVA growth of 1.9 per cent, making it the UK's joint third fastest growing town or city outside London, behind only Reading and Manchester and level with Cambridge. The city's annual GVA and employment growth are both expected to surpass the UK national average of and 0.7 per cent respectively.
Torbay follows closely and is projected to achieve a GVA growth rate of 1.6 per cent and an employment growth rate of 0.8 per cent.
Karen Kirkwood, managing partner at EY in the South West, said: "As the UK economy continues to recover, the South West is well-positioned to leverage its strengths in key sectors. "The region's economic momentum is expected to be underpinned by its relatively high concentrations of skills in high-value add sectors like tech, renewable energy and professional services, which are expected to be particularly important for Bristol’s position as a leading UK city for growth. Household spending is expected to rise over the coming year as consumers become more confident, and this should be good news for the South West’s hospitality sector."
