North-South divide set to widen | tutor2u Economics

Brace yourselves for greater regional inequality - perhaps Birmingham and Manchester apart - if the latest Ernst & Young figures are true. Their report flags up the differences in value added across the UK economy and highlights the diverging results. 

It also suggests that there are substantial network economies from the super-agglomeration of cities like London.

London’s GVA (gross value added) - a measure of economic growth - will expand by an average of 2.2 percent per year, ahead of the UK average of 1.8 percent.

Manchester is forecast to be the strongest performing city in terms of both GVA and employment growth, with annual increases of 2.4% and 1.2% per year respectively between 2017 and 2020.

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