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Economy In 26 Areas Fall Behind

Wednesday, August 7, 2013

GDP Per Person Below EU Average In 26 Sub Regions In UK And Ireland New GMB Study Shows

What these figures demonstrate is that the old industrial heartlands and the rural areas are desperate for investment that will bring jobs and prosperity says GMB.

There are 25 out of 37 sub regions in the UK and 1 of 2 in Republic of Ireland where regional gross domestic product per inhabitant is below the average for gross domestic product per inhabitant in the EU27.

Gross domestic product (GDP) is a key measure of economic development and growth. This data presents a regional analysis of GDP for the UK and Republic of Ireland at NUTS2 level, based upon the level of GDP per inhabitant (often used as an indicator of living standards). The latest figures available are for 2010. See map in notes to editors for geographies used in the analysis of the latest Eurostat figures by GMB.

West Wales and the Valleys has the lowest gross domestic product per inhabitant at 70% of the EU average or 63% of the UK average. Other sub regions in the bottom 12 are Cornwall and Isles of Scilly 72%,Tees Valley and Durham 77%,Lincolnshire 78%,Merseyside 81%,East Yorkshire and Northern Lincolnshire, South Yorkshire and Shropshire and Staffordshire 81%, Lancashire 83%, Border, Midland and Western in Ireland 85% and Northern Ireland 86% of EU average. The latest available figures from Eurostat for all areas in UK and Ireland are set out in the table below.

NUTS geographies (Nomenclature of territorial units for statistics) is a geographical system which subdivides the territory of the European Union into regions. Its aim is to provide a single and coherent territorial breakdown for the compilation of EU regional statistics. See notes to editors for sources and definitions. 

 

Regional gross domestic product - 2010

 

 

 

 

 

PPS per inhabitant

PPS per inhabitant in % of the EU27 average

PPS per inhabitant in % of the UK average

 

 

 

 

 

 

UK

27,500

113

100

 

EU 27

24,500

100

89

rank

 

 

 

 

1

West Wales and The Valleys

17,200

70

63

2

Cornwall and Isles of Scilly

17,600

72

64

3

Tees Valley and Durham

18,900

77

69

4

Lincolnshire

19,100

78

69

5

Merseyside

19,800

81

72

6

East Yorkshire and Northern Lincolnshire

19,900

81

72

7

South Yorkshire

19,900

81

72

8

Shropshire and Staffordshire

19,900

81

72

9

Lancashire

20,400

83

74

10

Northern Ireland

21,000

86

76

11

Devon

21,400

87

78

12

Highlands and Islands

21,400

87

78

13

Northumberland and Tyne and Wear

21,500

88

78

14

Essex

21,800

89

79

15

Kent

22,000

90

80

16

Derbyshire and Nottinghamshire

22,500

92

82

17

Dorset and Somerset

22,500

92

82

18

North Yorkshire

22,800

93

83

19

Cumbria

23,000

94

84

20

Herefordshire, Worcestershire and Warwickshire

23,000

94

84

21

West Yorkshire

23,300

95

85

22

West Midlands

23,300

95

85

23

Outer London

23,400

95

85

24

Greater Manchester

23,500

96

85

25

South Western Scotland

24,300

99

88

26

East Anglia

24,500

100

89

27

East Wales

24,600

100

89

28

Leicestershire, Rutland and Northamptonshire

25,400

104

92

29

Eastern Scotland

26,600

109

97

30

Hampshire and Isle of Wight

26,700

109

97

31

Bedfordshire and Hertfordshire

27,500

113

100

32

Surrey, East and West Sussex

27,900

114

101

33

Gloucestershire, Wiltshire and Bristol/Bath area

28,200

115

103

34

Cheshire

28,800

118

105

35

Berkshire, Buckinghamshire and Oxfordshire

34,900

143

127

36

North Eastern Scotland

39,500

162

144

37

Inner London

80,300

328

292

 

 

 

 

 

 

Republic of Ireland

31,300

128

114

 

Border, Midland and Western

20,700

85

75

 

Southern and Eastern

35,600

145

129

 

Paul Kenny, GMB General Secretary, said “These figures confirm the Mrs Thatcher’s legacy to the old industrial heartlands is that they have fallen far behind the EU and UK average in terms of output and living standards.

The figures also show that for South East far from it all being an economic success story there are areas below the average. The figures are for 2010 but there has been little or no recovery since then. Few will realise that the economies of Cheshire or those areas off the M4 corridor are stronger than Essex or Kent.

What these figures demonstrate is that the old industrial heartlands and the rural areas are desperate for investment that will bring jobs and prosperity.

The whole range of active public policy instruments to deliver industrial development in these sub regions is an urgent necessity. Economic development has to be a major responsibility for national and local governments and the EU and there has to be co-operation between the public and the private sectors. Development requires the mixed economy in action”

End

Contact: GMB Press Office on 07921 289880 or Gary Doolan 07582 182 358

Notes to editors

  1. Gross domestic product - GDP at market prices - is the final result of the production activity of resident producer units (ESA 1995, 8.89). It can be defined in three ways:
  1. Output approach: GDP is the sum of gross value added of the various institutional sectors or the various industries plus taxes and less subsidies on products (which are not allocated to sectors and industries). It is also the balancing item in the total economy production account.
  2. Expenditure approach: GDP is the sum of final uses of goods and services by resident institutional units (final consumption expenditure and gross capital formation), plus exports and minus imports of goods and services. At regional level the expediture approach is not used in the EU, because there is no data on regional exports and imports.
  3. Income approach: GDP is the sum of uses in the total economy generation of income account: compensation of employees, taxes on production, less subsidies, gross operating surplus and mixed income of the total economy.
  1. The different measures for the regional GDP are absolute figures in € and Purchasing Power Standards (PPS), figures per inhabitant and relative data compared to the EU27 average.
  2. The regional gross domestic product (GDP) is used in order to measure and compare the economic activity of regions. It is the most important indicator for the selection of Objective 1 regions according to the EU's regional policy.
  3. Regional gross domestic product data are Eurostat estimates based on a harmonized methodology. Figures for gross value added at basic prices after correction for financial intermediation services indirectly measured (FISIM) are used as the basic variable for the estimates. Extra-regional data (i.e. value added created in other national regions than on national territory, e.g. in embassies, foreign army bases, offshore energy production, etc.) are proportionally allocated to the regions of a country, i.e. there is no regional GDP for the Extra regio in Eurostat's official dataset. The conversion to PPS is based on national purchasing power parities which are also regularly calculated by Eurostat. For the methods of data collection see the publication "Regional accounts methods - Gross value added and gross fixed capital formation by activity".
  4. Regional Accounts combine data from many source statistics. Per inhabitant figures are obtained by dividing absolute figures by the total population (average annual data for the total of the male and female population). Regional population data is provided by the National Statistical Institutes. Population figures are residential.
  5. Purchasing Power Standards (PPS) are a fictive currency unit that eliminates differences in purchasing power, i.e. different price levels, between countries. Thus, the same nominal aggregate in two countries with different price levels may result in different amounts of purchasing power. Figures expressed in Purchasing Power Standards are derived from figures expressed in national currency by using Purchasing Power Parities (PPP) as conversion factors. These parities are obtained as a weighted average of relative price ratios in respect to a homogeneous basket of goods and services, both comparable and representative for each country. They are fixed in a way that makes the average purchasing power of one Euro in the European Union equal to one PPS. The calculation of GDP in PPS is intended to allow the comparison of levels of economic activity of different sized economies irrespective of their price levels. It is less suited for comparisons over time. Eurostat compiles PPP and publishes them on this website (Data / Economy and Finance / Prices).
  6. PPP and related economic indicators are constructed primarily for spatial comparison and not for comparison over time. Therefore any comparison of results of different years must be made keeping this in mind. In particular, GDP in PPS should not be used to estimate growth rates.
  7. NUTS geographies (Nomenclature of territorial units for statistics) is a geographical system which subdivides the territory of the European Union into regions. Its aim is to provide a single and coherent territorial breakdown for the compilation of EU regional statistics.
  8. Source: Eurostat http://epp.eurostat.ec.europa.eu/portal/page/portal/eurostat/home

 

See map of sub regions in UK and Republic of Ireland

 

Boroughs in Inner London- Camden, City of London, Hammersmith and Fulham, Kensington and Chelsea, Wandsworth, Westminster, Hackney, Haringey, Islington, Lambeth, Newham, Southwark, Lewisham and Tower Hamlets.

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