Reading tops South East as region looks to outpace national growth, finds EY
Reading is set to be the fastest growing economy in the South East according to the latest forecast from EY, with the wider region beating out the national average growth rate.
The town is expected to see annual GVA growth of 2.5 per cent between 2024 and 2027, compared with 2.0 per cent for the South East and 1.9 per cent for the UK.
Employment in the South East is also predicted to grow by 1.3 per cent over the same period – 0.2 per cent higher than the rest of the country, and behind only London. For Reading, this value rises to 1.8 per cent.
The region’s economic momentum will be driven in part by its dense concentration of high-growth sectors, including professional services and information and communication.
Hear the latest insights from property experts on The Business Magazine’s new podcast
This is particularly relevant to the Thames Valley, whose information and communication sector is expected to see annual GVA growth of 2.2 per cent over the next three years.
Meanwhile, the South East continues to have one of the lowest levels of economic inactivity from 16 to 64 year olds in the UK (15.9 per cent) compared with the national average (18.3 per cent).
Gareth Anderson, managing partner at EY in the South East, said: “The diverse nature of the South East’s knowledge-based sectors has helped position the region top of the leaderboard for economic growth outside of London and has set it up well for future growth.
“While the rising cost of living continues to impact disposable income and areas that are dependent upon local high streets, falling inflation may counter this within the private sector.
“In the last 12 to 24 months, businesses have been impacted by a range of macro-economic issues and they are understandably careful when it comes to where and when they spend.
“As we look to the future there is optimism in the air as these issues ease, restoring a level of confidence amongst businesses.”
Read more - EY expects ‘easier year for many, but not all’ as South East profit warnings drop
