Derby’s economy is expected to bounce back stronger than anywhere in the East Midlands, according to a report.
The latest UK Powerhouse report, published earlier in December by law firm Irwin Mitchell and the Centre for Economics and Business Research (Cebr), predicts that the city’s annual Gross Value Added (GVA) growth in the second quarter of next year will be 25%, ahead of Leicester (24.9%) and Nottingham (23.2%).
The report, which assumes a substantial proportion of the UK population will have received a Covid-19 vaccine by the middle of next year, states that Derby’s economic output is expected to increase by 7.3% to £6.7 billion by the final quarter of 2021, with employment moving back into positive territory at 5.5% growth.
However, Derby’s employment levels are expected to fall by 0.8% annually at the point when the Government’s furlough scheme finishes compared to a 0.6% fall in Nottingham and a 5.8% reduction in Leicester.
Councillor Chris Poulter, Leader of Derby City Council said:
“This is an encouraging report that demonstrates the hard work of everyone involved in the Economic Recovery process. We prepared a plan early and continue to develop that to take advantage of the expected economic recovery following the widespread roll out of the vaccine.
“Derby remains the industrial heartbeat of the East Midlands and has shown its resilience and powers of recovery following adversity in the past. Our ambitious efforts to secure investment, diversify our economy and decarbonise our environment will raise our profile regionally, nationally and globally.”
Paul Simpson, Chief Executive of Derby City Council said:
“Our economic recovery plans, including the diversification of the city centre economy, are working well and we are confident in the city’s ability to bounce back. With the vaccine starting to be rolled out in the city we are hopeful that by Spring/Summer of 2021 we will really see the city grow.
“This report is a good indicator of our progress, but we will not be complacent and will work tirelessly to make sure that Derby is ready to grow back better and stronger than ever before.”