GDP growth set to remain positive for the West Midlands

GDP growth in the West Midlands is expected to stay positive at 1% in 2013, slightly ahead of some other parts of the country, latest studies have concluded.

PwC said the data contained in its latest UK Economic Outlook was a positive indicator for the regional economy.

Growth in the region is expected to stay on par with that nationally, with GDP growth rising from 1% this year to 2% in 2014. Nationally, consumer spending is set to rise, with growth of around 1.2% expected this year, rising to 1.9% in 2014. Inward investment from the BRIC economies is also forecast to improve, which PwC said would support long-term prospects for growth.

Mark Smith, regional chairman at PwC in the Midlands, said: “GDP growth of 1% this year is positive for the West Midlands economy and businesses should be encouraged to capitalise on the expected upturn in consumer spending and opportunities created by local infrastructure investment.

“By staying confident, businesses in the region have a real opportunity to drive any economic recovery.”

He said increased capital spending on infrastructure investment could aid recovery further and it was hoped the Chancellor might announce more on this in his Budget, while also laying the groundwork for longer term supply side reform.

How things stand nationally