The north-south growth divide will close for the first time in six years as the credit crunch takes its toll on the City, a report out today shows. The difference will disappear next year for the first time since 2002 as London's economy slows down, said Experian, Britain's leading credit reference company. The south has been growing 1% a year faster than the north but this will change over the next couple of years as the credit crisis and consumer slowdown take their toll, especially on financial and business services. London's growth in average output per head - also known as gross value added (GVA) - will fall to 1.5% in 2009 from 2.3% the previous year. In the north-east, GVA will increase to 1.2% from 0.9% the year earlier. "London will see greater falls as it has a much greater share of GVA than the north," said Andrew Goodwin, managing economist at Experian. Read the article here.
What are the implications of a 'two speed economy'?
No comments:
Post a Comment