Thursday 15th May 2008
Along with the credit crunch, other traditional economic indicators are also currently feeling the squeeze, Experian has revealed.
The financial insight provider explains that the north-south divide is narrowing as a result of global turbulence in the financial markets.
While this may sound like cause for celebration in the north, figures from the company portray a less upbeat picture.
Far from outpacing the south, regions in the north are likely to remain slightly behind in terms of economic growth over the coming years.
In 2009 the gap is predicted to close almost completely, with 1.4 per cent economic growth expected in the north and 1.5 per cent in the south.
But this is to be followed by divergence between the regions - although Experian notes that the south is not likely to outpace the north to as significant a level as has been observed in the past.
The organisations William Thomson comments: "Following an expansion of three per cent last year, UK gross domestic product growth is forecast to slow to 1.8 per cent in 2008 and 1.5 per cent in 2009."
Along with this slowdown, however, is an anticipated fall in employment levels next year, the first such slump for 17 years.
While Experian predicts a convergence between the regions, its recent report on consumer shopping habits indicated more confidence in the south than elsewhere in the UK.
Only three regions showed positive growth in shopper numbers during April, with London and the south-east two of those with increases of 1.32 per cent and 3.21 per cent respectively.
Both outpaced the north-west, the only other region to secure growth with an increase of 1.11 per cent in retail footfall.
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