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Region’s economy set to recover faster than average in 2021

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The East of England economy will see output fall slightly more than the UK average this year but it will stage a faster than average recovery in 2021, according to a new report. However the Economic Outlook report from Oxford Economics predicts that the number of people employed in the East next year is likely to be slightly lower than it was pre-coronavirus and that businesses in the region are vulnerable to Brexit talks. Two thirds of goods imported into the region come from the EU and trade difficulties could leave many businesses with problems importing parts and components after the transition periods ends.

Harpreet Panesar, East of England regional director for accountancy body ICAEW - which commissioned the report - said: “It’s been a difficult year so far, but the East of England has the potential for a strong recovery. However, we need government to continue to support businesses that are still struggling, where needed, especially if there is a need for further lockdowns. Without support, we may lose that strong recovery and the region’s economy will stay depressed.”

“The Chancellor’s autumn budget should be a social, education and industrial strategy which combines protection and re-training for displaced workers over the short and medium term, with intervention and investment to create jobs with a future, especially in the green and scientific sectors.”

Richard Holt of Oxford Economics said: “The East of England includes some sectors such as food manufacturing and pharmaceuticals that have been relatively resilient during the pandemic and others such as vehicle manufacturing that have faced particular challenges. The government’s industrial strategy, and its EU trade negotiations, need to take account of all sectors of the economy.”

Last Updated ( Monday, 19 October 2020 09:37 )