The UK economy shrugged off soaring oil prices and the dotcom bubble burst, to see its best year since 1997 last year, according to a survey by HSBC.
The report said the economy had expanded in real terms by about 3% in 2000, compared with the long-term average of 2.5%.
HSBC’s report, however, highlighted regional differences around the UK, mainly arising from sterling’s strength against the euro. The regional breakdown showed South-East England saw yet another year of strong economic expansion, bringing its growth over the last decade on par with the performance of the US economy, whereas the North West felt the effects of the struggling manufacturing sector. The region’s growth has lagged behind the UK for the last six years.
The North East has been the slowest growing region for most of the last decade, and is among the poorest in terms of GDP per head. Earnings are also about 12% lower than the UK average.
This year, the bank predicts UK growth will slow, in response to moderating world growth and to earlier hikes in interest rates.
Chief economist Dennis Turner warned slower world trade growth would impact on areas which are more dependent on exports, namely the North of England, the Midlands and Wales.
EGi News 30/05/01
