You are here: South West RDA Home > News and events > 2010 > June > Economics Review

All RDAs across England are closing by March 2012 (see transition and closure section). With our resources reducing steadily, this page has not been recently updated and the information below may not be current. If in doubt, please contact us directly.

Economics Review

June 2010

Signals are still mixed on the state of the economy, according to the latest quarterly Economics Review from the RDA which warns that painful adjustments could lie ahead.

Economics Review - Issue 20, May 2010 (pdf document)

It says that the key risk is that the new government’s fiscal tightening will dampen demand in the region before the private sector is ready to fill the gap. At a time of fragile recovery, with almost one fifth of the South West's workforce in the public sector (a similar proportion to that in the North West of England, the West Midlands and Yorkshire), this is not the moment to risk a double dip recession with disproportionate public sector spending cuts on our region.

For more information, see the following media articles:

http://www.thisiscornwall.co.uk/news/South-West-shortchanged/article-2267755-detail/article.html

http://www.timesonline.co.uk/tol/news/politics/article7135563.ece

http://www.thisisbristol.co.uk/news/Projects-West-worst-hit-cuts-warns-MP-Cable/article-2268908-detail/article.html

“Ultimately, it will be good for the region to rebalance its economic activity away from domestic consumption and public employment,” says the report.

“But it could be a painful adjustment in the short term, especially if the fiscal ‘cuts’ are in areas where the South West is strong, such as defence, or if tax increases hit demand for particular South West products and services, and jobs (such as tourism).

“Nevertheless, the key issue for South West England’s development will remain how we can re-direct resources away from the growth points of the last expansion to the growth potential for the next,” it adds.

The Review, published in May, includes sections on Economic Policy, as well as on the World, UK and South West economies. It also includes special papers on Spatial Intelligence and South West International Trade.

The research highlighted that whatever form of regional or local structure evolves from the current situation, it will be important to discuss the most appropriate geography for economic development. It looks at long term growth prospects, functional market areas, and agglomeration and spill-over effects in South West England.

Economics review May 2010 front cover