New research has concluded that Aberdeen was the only major city in the UK to see economic growth throughout the recession.
The study, by accountants UHY Hacker Young, has demonstrated that Gross Value Add (GVA) per resident grew in the period January 1st 2009 to January 1st 2010.
GVA is the measure of an area’s economic contribution, in accordance with the value of goods and services produced. Aberdeen saw this contribution rise from £28,442 to £28,731, an increase of more than one percent over the period.
Analysts at the accountancy firm responsible for the study suggest this resilience is largely due to the city’s strength of its oil services. Announcing their findings to the business world, one of the firm’s Partners, Marc Waterman, said that Aberdeen’s situation is unique within the UK. He went on to explain that it was almost the only city found in the UK with an economy majorly concentrated on the oil and gas industries.
Factoring in Chancellor George Osborne’s budget in mid-March, continued growth is expected.
It is also likely that new investment will be seen, bucking the trend once again. With many companies finding commercial finance in Scotland hard to come by, Aberdeen oil and gas exploration companies are become part of an international centre of excellence for the industry.
Despite an overall decline, Edinburgh has become the biggest contributor per resident in the UK, with a GVA of £34,950.
The Scottish capital is now ahead of London, who saw its GVA per capita drop from £34,964 to £34,779, showing that wealth creation in the UK capital has been hit hard by the downturn in financial services.
