Derby retains spot as fastest growing East Mids economy

Derby continued to lead the way as the fastest growing city economy in the East Midlands at the start of this year despite experiencing only marginal employment growth, according to a new report.

The UK Powerhouse study is produced by Irwin Mitchell and the Centre for Economics and Business Research (Cebr) and provides an estimate of GVA growth and job creation within 46 of the UK’s largest cities 12 months ahead of the Government’s official figures.

Published this month, the latest report revealed that Derby experienced GVA growth of 2% across the first quarter of 2018, which put it among the top 20 best-performing cities in the UK. Nottingham and Leicester trailed slightly behind with GVA growth of 1.8% and 1.6% respectively.

However, there was less good news for Derby in terms of employment growth, with the city experiencing one of the worst growth levels with its workforce increasing by just 0.2% across the same period.

The new report has also provided forecasts for the short and long term future, with Nottingham’s economy expected to grow by 12.7% in the next decade. In contrast, Leicester’s economy is set to expand by 11.1% across the period, while the Derby city economy is only expected to growth by 7.4%.

Victoria Brackett, chief executive at Irwin Mitchell’ Business Legal Services division, said: “This new report shows that while Derby is no longer close to the top of the Powerhouse table, the city continues to set the pace in the East Midlands. Such growth is perhaps even more remarkable considering the city’s workforce has only grown marginally across the same period.

“However, the predictions for the future hint that Derby may not be able to maintain such a level of growth, so it will be interesting to see what the city may be able to do to tackle this issue both in the short and long term.”

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