REPORT PREDICTS BILLION POUND BOOST FOR BIRMINGHAM’S ECONOMY

A new economic report predicts that Birmingham is set to see its economy grow by £1bn by the end of 2023, bucking the trend for the most successful cities to be found in Southern England.

According to Irwin Mitchell’s UK Powerhouse report, produced by the Centre for Economics and Business Research (Cebr), Birmingham delivered 6.9% GVA* growth in the 12 months to Q4 2021, placing it 7th out of the best performing cities in the UK for economic output.

By the end of 2023, Birmingham is one of the few cities outside of the South to retain its position, remaining 7th for growth, with year-on-year GVA of 2.3% and an economy worth £27bn. The city is also set to improve its employment performance, rising to 7th in the report’s league table and delivering over 24,000 new jobs.

Eight of the top 10 fastest growing cities in the UK by Q4 2023 are expected to be located in the South and East of England, with Birmingham and Edinburgh the only two outliers.

The report highlights several factors behind Birmingham’s strong performance, including major projects like HS2, plus a regional housing boom fuelling a burgeoning real estate sector.

Significantly, the West Midlands is also the highest placed northern region for attracting Foreign Direct Investment (FDI)** , a factor the report highlights as a vital component for economic growth enjoyed by cities in the South and East of England.

For the government’s levelling up agenda to be successful, the report makes clear that other regions need to lure more FDI to their cities to compete with their southern rivals. Cities like Birmingham are proof that with the right conditions, growth in FDI can be achieved.