Signs of recovery across region after year of pain
Chamber report signals hope after effects of pandemic and Brexit
BIRMINGHAM is on track for economic growth despite the impacts of Covid-19 and Brexit, according to a new economic report.
The annual Birmingham Economic Review, published by Greater Birmingham Chambers of Commerce (GBCC) and the University of Birmingham’s City-REDI economic institute, reveals promising signs of recovery even though well-documented challenges such as talent shortages and inequality remain.
The report reviews Birmingham’s economic landscape, before and during the pandemic, as well as what lies ahead for the region.
While the pandemic led to significant falls in output, productivity and employment, the report says Birmingham continues to be a draw for high-profile business moves and expansions.
Over the past 12 months, banking giants Goldman Sachs opened its largest office outside of London at 55
Colmore Row while Arup confirmed it was moving 1,000 employees to a new office at One Centenary Way from its current home in Solihull.
Greater Birmingham businesses are also reporting increased domestic and international demand, according to the chamber.
More than half (52 per cent) of local firms surveyed during Q3 reported an increase in UK sales and just 13 per cent recorded a fall in domestic activity.
Fifty per cent reported an increase in advanced UK orders and 35 per cent experienced an increase in international sales.
The Birmingham Economic Review also highlights significant opportunities for firms in the city region to get involved in the low-carbon supply chain such as the shift towards electric vehicles, the decarbonisation of domestic heating and the region’s growing clean energy sector.
Henrietta Brealey, chief executive of the GBCC, said: “The data contained in this year’s Birmingham Economic Review – the fifth annual review of its kind – is perhaps the most important to date.
“Following the once-in-a-lifetime social and economic shock precipitated by coronavirus and the subsequent restrictive measures, we are beginning to see positive signs of recovery at both local and national levels.
“While the impacts of Covid-19 and Brexit remain in play, the city stands on the precipice of exciting opportunities for economic growth.
“It is now less than a year to go before the Birmingham 2022 Commonwealth Games and the city has a unique opportunity to leverage the array of benefits that the once-in-a-generation investment in HS2 and associated local developments will bring.
“Birmingham was on an upward trajectory prior to the pandemic and a lot of the good work done by businesses and stakeholders alike has set us up to come out of this crisis on a relatively surer footing.”
Professor Simon Collinson, deputy pro-vice chancellor for regional engagement and director of WM REDI and City-REDI, added: “The pandemic has hit the UK economy harder than most other Organisation for Economic Co-operation and Development countries and the West Midlands harder than most other UK regions.
“This economic shock, coupled with Brexit, led to significant falls in output, productivity and employment as well as new levels of inequality.
“Uncertainty remains but the signs are remarkably promising.
“The range of indicators we track, presented in this report, show growth and optimism as part of a
tentative bounce-back.”