SOUTHAMPTON’S economy will start growing again later this year but at a slower rate than other parts of the south coast, a report says.
The UK entered a recession in the second half of 2022 but growth should return in the second half of this year, according to the Irwin Mitchell City Tracker.
Southampton’s economy is predicted to be 0.5 per cent larger in the final quarter of 2023 than it was at the end of 2022, but it is expected to perform relatively poorly for employment levels.
Employment will grow just 0.3 per cent year-on-year in the last quarter of 2023, according to the report.
The report, produced by the Centre for Economics and Business Research (Cebr), examined 50 locations in the UK, forecasting growth in gross value added (GVA) and employment.
The same report found growth in Bournemouth’s economy would reach 0.7 per cent in the last quarter of this year, while Brighton and Portsmouth would be in the top 10 of the 50 areas surveyed, with growth of 1.1 per cent and 0.8 per cent respectively.
Charlotte Rees-John, partner at Irwin Mitchell and head of its consumer sector, said: “Last year presented numerous challenges and the downward pressure on spending activity, which continues to be concentrated in the consumer sector, looks set to continue throughout the first half of 2023.
“The consumer sector has however been one of the most resilient, agile and innovative sectors in recent times and those businesses that succeed during 2023 will be in a very strong position to take advantage of a more stable economic environment in 2024.
“Considering longer-term aspirations, such as the transition to carbon net zero, is something all businesses, irrespective of the sector they are in and the pressures that they are facing, need to do.
"ESG (environmental, social and governance) is fast becoming a priority for the majority, particularly at a time when there is huge pressure and scrutiny from consumers and investors who are increasingly making their decisions based on ethical as well as financial factors.”
READ MORE: Southampton's sports economy 'has shrunk by 55 per cent since pandemic'
Josie Dent, managing economist at Cebr, said: ”2023 will be a difficult year for consumers and businesses across the south coast, with the cost-of-living crisis expected to lead to falling economic activity. However, Cebr forecasts that economic growth will resume in the second half of 2023, with most cities expected to see an annual expansion in GVA by Q4 2023.”
A message from the Editor
Thank you for reading this article - we appreciate your support in reading the Daily Echo.
Subscribing to the Echo means you have unrestricted access to the latest news, features and Saints coverage - all with an advertising-light website.
You will also have full access to Saintsplus, your new home for Southampton FC tactical analysis, features and much, much more.
Don't just take my word for it - subscribe today.
Follow the latest breaking news in the Southampton area by searching Southampton News - Breaking News and Incidents on Facebook
Follow the latest court and crime news on our dedicated group by searching Hampshire Court and Crime News on Facebook
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel