Birmingham and the West Midlands will see steady growth over the next three years, according to EY’s latest regional economic forecast.
GVA (gross value added) is set to increase by 1.6% annually from 2025 to 2028 in Britain’s second city, while employment levels are poised to grow by 0.8% a year, experts predict.
Meanwhile across this three-year period the West Midlands region as a whole is forecast to see yearly GVA growth of 1.5% and employment growth of 0.6%. By comparison, London and the South East are set to see average annual GVA growth of 1.7%.
Overall the UK is expected to see annual average GVA growth of 1.6% between 2025 and 2028 with rising real wages, falling inflation and interest rate reductions helping build economic momentum.
Driving growth over the three years is a “greater concentration of high-value sectors and relatively robust growth expected in industries such as information and communication, professional services, utilities and construction,” said EY’s UK Regional Economic Forecast 2025.
Rohan Malik, EY’s managing partner for government and public sector, said: “The UK is forecast to make a welcome return to steady growth this year. Technology and professional services are expected to feature in the UK’s upcoming Industrial Strategy, with the hope that these sectors will support economic momentum.”
He added: “Upgrading energy infrastructure should also be prioritised, as reducing prices would ease pressure on the major industrials and manufacturing sectors. Enhancing domestic power supply and capacity will help the UK harness the enormous cost reductions and productivity opportunities that AI offers nearly every sector, transforming growth potential into lasting prosperity.”
