Growth outlook satisfactory, says PwC report
The East Midlands' rate of economic growth is set to rise slightly above the UK average to 2.3 per cent in 2012. That's according to accountancy firm PwC's UK Economic Outlook report.
Economic growth in the region is set to rise to 1.5 per cent in 2011 and 2.2 per cent in 2012, above the national growth rates of 1.3 per cent and 2.2 per cent respectively.
PwC's report partly attributes the modest rate of growth which is forecast for 2011 to the dip in consumer spending. It suggests the main driver of growth is now net exports.
Growth will increase gradually to 2.2 per cent in 2012, said the report, as business investment next year is assumed to pick up from the low levels seen during the recession.
Mark Smith, regional chairman at PwC in the Midlands, said: "The outlook for the West Midlands economy continues to be modest, but better than some other UK regions, which is positive news for local companies.
"The UK as a whole faces a slow climb to recovery given the continued squeeze on consumer and government spending. In the short term, risks remain weighted to the downside and it would therefore be prudent for the Bank of England to keep interest rates at current low levels for some months to come."
