Regional economic activity by gross domestic product, UK: 1998 to 2023

• In 2023, real gross domestic product (GDP) for the UK increased by 0.3%, but all International Territorial Level (ITL) 1 regions except Northern Ireland and the North East of England reported negative growth.

• Of the ITL1 regions, Northern Ireland experienced the largest increase in real GDP in 2023 at 0.8%; the largest decrease was seen in the East Midlands at negative 1.2%.

• At the ITL1 level, London had the highest GDP per head in current market prices in 2023 at £69,077, while the North East had the lowest GDP per head at £28,583.

• Of the 15 English combined authorities, West of England showed the largest increase in real GDP in 2023 at 2.0%, while the largest decreases were registered in Tees Valley and Greater Lincolnshire, both at negative 2.4%.

• Of the combined authorities, West of England had the highest GDP per head in current market prices in 2023 at £47,961, while Tees Valley had the lowest GDP per head at £27,005.

UK gross domestic product (GDP), in chained volume measures, was estimated to have increased by 0.3% in 2023.  

Out of England, Northern Ireland, Scotland and Wales, only Northern Ireland showed an increase in real GDP in 2023 at 0.8% (Table 1). The largest decrease in real GDP of negative 0.8% between 2022 and 2023 was in Wales.

Notes:

1. Figures may not sum because of rounding in totals; per head (pounds) figures are rounded to the nearest pound.

2. 2023 data are provisional.

3. Population estimates are sourced from Population Estimates for UK release.

4. 'Real GDP' is GDP in chained volume measures.

5. Per head figures exclude Extra-Regio as it comprises activity that cannot be assigned to regions.

6. n/a stands for not applicable.

At the International Territorial Level (ITL) 1, the largest increase in real GDP in 2023 was in Northern Ireland at 0.8%, followed by the North East at 0.5%. The largest decrease in 2023 was in the East Midlands at negative 1.2%, followed by the South East at negative 1.1%.

All the countries and ITL1 regions except Northern Ireland and the North East of England are showing lower growth in real GDP than the UK as a whole. This is caused by the impact of "extra-regio", the offshore contribution to GDP that cannot be assigned to any region. In current market prices, the UK and its constituent regions are entirely consistent. The deflators used to remove price inflation and derive real volume estimates are reducing growth in 2023 across most mainland regions. However, they are reducing the fall in extra-regio by a considerable amount. This results in higher relative growth at the UK level.

Figure 1: Most UK countries and regions saw negative growth in real gross domestic product between 2022 and 2023

Notes:

1. GDP in chained volume measures.

2. This chart shows annual growth rates to one decimal place. There may be instances where growth in a region is showing no change to one decimal place. However, there may be movements in the underlying data.

This year we have adopted the 2025 update to the International Territorial Levels (ITL) geography framework. This is the first major update since the introduction of the ITL in 2021, to replace the Nomenclature of Units for Territorial Statistics (NUTS) classification following the UK leaving the European Union.

The new ITL classification is unchanged at the ITL1 level (countries and regions) but includes considerable changes at both ITL2 and ITL3 levels. Of particular interest, the ITL2 level has been realigned to match as far as possible the emerging combined authorities with elected mayors, making it more relevant to current areas of economic interest.

In a departure from our usual commentary, this year we include a focus on the 15 currently agreed combined authorities, 12 of which match ITL2 subregions, and the other three are included in our supplementary tables for city and enterprise regions (CER).

Notes:

1. Data for all ITL2 subregions are included in our dataset Regional gross domestic product: all ITL regions; data for CER areas are included in our dataset Regional gross domestic product: city and enterprise regions.

2. GDP at current market prices is on a workplace basis.

3. Figures may not sum because of rounding in totals; per head (pounds) figures are rounded to the nearest pound sterling.

4. 2023 data are provisional.

5. Per head figures exclude Extra-Regio as it comprises activity that cannot be assigned to regions.

6. 'Real GDP' is GDP in chained volume measures.   

7. n/a stands for not available; some of the newest Combined Authorities have not yet been assigned geocodes.

When ordered by gross domestic product (GDP) per head in current market prices, the highest combined authority areas in 2023 were West of England at £47,961, followed by Cambridgeshire and Peterborough at £40,723.

The lowest combined authority areas in 2023 were Tees Valley at £27,005, and South Yorkshire at £28,187.

In real terms, 5 of the 15 combined authority areas experienced an increase in GDP between 2022 and 2023. The largest increases were in West of England (2.0%), North East (1.6%), and Cambridgeshire and Peterborough (1.2%).

The West of England saw considerable growth in manufacturing between 2022 and 2023, particularly in transport equipment. In the services sector it grew strongly in telecommunications and financial services.

Of the 10 combined authority areas that saw decreases in real GDP in 2023, the largest decreases were in Tees Valley (negative 2.4%), Greater Lincolnshire (negative 2.4%), and East Midlands (negative 2.0%).

Figure 2 allows users to explore how gross domestic product per head in current market prices has varied among local authorities between 1998 and 2023.

Figure 2: Gross domestic product per head for UK local authorities, 1998 to 2023

Notes:

1. The City of London and Westminster are not shown on the map because their GDP per head are large outlier values.

2. Natural breaks have been used to classify the data into ranges.

3. Figures for Northern Ireland in 2023 are not yet available because of a delay in the production of population estimates.

Chained volume measures (CVM)

These time series have the effects of inflation removed by considering changes in quantity between consecutive periods, holding prices from previous periods constant.

Constant price (KP) series

These series have the effects of inflation removed by holding prices throughout the series at the level in a chosen base year (also known as "real terms" series).

Current price (CP) series

These series include the effects of inflation.

GDP

Gross domestic product (GDP) measures the value of goods and services produced in the UK. It estimates the size of and growth in the economy.

Gross value added (GVA)

The value generated by any unit engaged in production and the contributions of individual sectors or industries to gross domestic product.

ITL

The International Territorial Levels (ITL) are part of the new UK geographies classification system. This has superseded the Nomenclature of Units for Territorial Statistics (NUTS) classification system.

Methodology information

Various guidance and methodology publications relating to regional gross value added: balanced (GVA(B)), income (GVA(I)) and production (GVA(P)) are available. Our Regional accounts methodology guide: June 2019 provides an overview of the methodology used to compile regional accounts outputs.

More quality and methodology information on strengths, limitations, appropriate uses, and how the data were created is available in the Regional economic activity by gross domestic product Quality and Methodology Information.

Other historical guidance, methodology and update documents are also available in Section 7: Measuring the data of our Regional economic activity by gross domestic product, UK: 1998 to 2018 bulletin.

Revisions

Gross regional product (GDP) and GVA estimates show revisions for the period 1998 to 2022.

All estimates, by definition, are subject to statistical error. However, in this context the word refers to the uncertainty in any process or calculation that uses sampling, estimation or modelling. Most revisions reflect either the adoption of new statistical techniques or the incorporation of new information, which allows the statistical error of previous estimates to be reduced.

This year we have adopted the 2025 update to the International Territorial Levels (ITL) geography framework. This is the first major update since the introduction of the ITL in 2021, to replace the Nomenclature of Units for Territorial Statistics (NUTS) classification following the UK leaving the European Union.

The new ITL classification is unchanged at the ITL1 level, still comprising Wales, Scotland, Northern Ireland and the nine English regions. There is also a 13th "region", called "extra-regio", which contains activity that cannot be assigned to a mainland region of the UK (North Sea oil and gas extraction, UK embassies and armed forces posted overseas).

At the ITL2 level, there are now 46 subregions (formerly 41), with new subregions in Wales, Scotland, and the North East, South West and East of England.

At the ITL3 level, there are now 182 local areas (formerly 179), with new areas in all countries and regions except Northern Ireland, the North East, East Midlands and West Midlands.

At the local authority district (LAD) level, we have updated to the 2024 boundaries, giving a total of 361 local authority districts, unitary authorities, metropolitan districts, London boroughs and Scottish Councils.

With so many geography changes, we have reviewed and updated the industry groupings necessary to avoid disclosure of confidential information at each level of ITL geography.

• At the ITL1 level, there is one extra industry, splitting out 36 to 37 into 36 (water supply) and 37 (sewerage).

• At the ITL2 level, there are two extra industries, splitting 36 to 39 into 36 to 37 and 38 to 39 (waste management), and splitting 59 to 60 into 59 (TV and film production) and 60 (broadcasting).

• At the ITL3 level, there is one fewer industry, splitting 31 to 33 into 31 to 32 (other manufacturing) and 33 (installation and repair), but combining 64 to 66 (finance and insurance), and combining 74 to 75 (other scientific activities, including vets).

• At the LAD level, there are three extra industries, splitting 01 to 09; 35 to 39 (ABDE) into 01 to 09 (AB) and 35 to 39 (DE), splitting 16 to 23 into 16 to 18 (paper, wood and printing) and 19 to 23 (oil, chemicals and minerals), splitting 24 to 30 into 24 to 25 (metal and metal products) and 26 to 30 (electrical products and machinery), and splitting 58 to 63 into 58 to 60 (publishing and broadcasting) and 61 to 63 (telecoms and computing), but combining 86 to 88 (human health and social work).

There will be a small amount of industry suppression at the LAD level, where we have extreme outliers such as the Isles of Scilly and the Scottish island councils, or to avoid secondary disclosure of Arran and Cumbrae in Scotland, as there is a slight mismatch between the ITL geography and the Scottish Council areas of Argyll and Bute, and North Ayrshire.

We have published revisions triangles for GVA:

• revisions triangles: regional gross value added (balanced) in current basic prices

• revisions triangles: regional gross value added (balanced) in chained volume measures

Accredited official statistics

Data included in this release are designated as accredited official statistics, which means they have been independently assessed by the Office for Statistics Regulation (OSR) and confirmed to comply with the standards of trustworthiness, quality and value in the Code of Practice for Statistics.

Quality information

Figures for 2023 are provisional as national estimates have not been through supply and use balancing at the time of this publication. Regional industry estimates for the components of income and production in 2023 have been calculated by applying growth in gross domestic product (output) industry figures and then constraining these to sum to the income and production component totals. The figures used in this process are consistent with those published in the UK National Accounts, The Blue Book: 2024.

During work to improve the Producer Price Index (PPI) and the Services Producer Price Indices (SPPI), a problem was identified with the methods used to calculate these indices. Work is under way to address this problem, however, no notable changes in recent economic trends are expected to result from this issue.

Users should be aware that the problem affects gross domestic product (GDP) deflator values going back several years. These are used to calculate regional gross value added (GVA) in chained volume measures and once the problem has been addressed there may be some revisions to both national and regional volume estimates. For further information see our statement about the Pausing of Producer Prices publications.

Following Census 2021 in England and Wales, we now have rebased population estimates for the intercensal years 2012 to 2020. Population data for Northern Ireland are also complete up to 2022, though we do not yet have a breakdown of Northern Ireland to ITL3 and local authority level for 2023. Population data for Scotland are subject to additional delay as their census was itself delayed by a year. We do not yet have population estimates for the further breakdown of Scottish Councils needed to produce some ITL2 and ITL3 regions of Scotland, for the intercensal years 2012 to 2021 or for 2023. We have therefore suppressed any estimates of gross domestic product (GDP) per head for affected areas of Scotland and Northern Ireland from this publication.