Brexit helped Derby become the UK’s third fastest-growing city economy last summer, new research has found.
Only Aberdeen and Cambridge were ahead of us between July and September, according to a UK Powerhouse study.
It found major manufacturers have been enjoying increased competitiveness on the global market thanks to the weak pound – sparked by Britain’s vote to leave the EU.
Giants such as Rolls-Royce and Toyota has led to Derby benefiting from such depreciation.
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It means Derby has overtaken Nottingham to once again become the fastest growing city economy in the East Midlands.
The study, produced by Irwin Mitchell and the Centre for Economics and Business Research (Cebr), provides an estimate of GVA growth and job creation within 45 of the UK’s largest cities 12 months ahead of the Government’s official figures.
The report reveals the Derby economy grew at a rate of 1.9% in the third quarter of 2017.
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As such, Derby climbed an impressive 27 places in the rankings.
We asked Marketing Derby chief John Forkin the following three questions in relation to the positive news.
Q: How has Derby managed to achieve this impressive performance? What factors are involved?
John Forkin: “Derby’s strong position is mainly due to the city’s strength in manufacturing. The report highlights that we are home to Bombardier, Rolls-Royce and Toyota and this sector has benefited from the fall in the pound.”
Q: Why should the average person in the street care about this?
JF: “Most definitely they should care because economic strength leads to jobs, both in the hi-tech advanced manufacturing companies, and in their direct and indirect supply chains. This helps drive jobs in retail, food & drink and of course leisure.
“The report also picks out that Derby has had positive jobs growth and is set fair for 2018 which has to be good news.”
Marketing Derby’s John Forkin
Q: The research found many major manufacturers, such as Derby’s Rolls-Royce and Toyota, have been enjoying increased competitiveness on the global market thanks to the weak pound. Can it be argued Brexit is having a positive impact on Derby?
JF: “Brexit is a few years away but the vote in 2016 led to a significant fall in the pound and this has provided a short term ‘sugar hit’ for exporters with commensurate pain for importers.
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“However, our long term growth cannot depend on this.
“Designing and making quality products, desired by customers across the world, is the only viable strategy. This will depend on trade and customs agreements in place when Brexit finally happens, most likely in 2021.”
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Source: Derby Telegraph