Grim predictions for growth across Hampshire & the Isle of Wight
Predictions have revealed that economic growth is set to remain “flat” in Hampshire and the Isle of Wight in 2024
Hampshire County Council cabinet papers revealed that despite a “better than expected” economic performance in the first half of 2023, growth for 2024 is not expected to be more than 0.1 per cent. It will only be marginally better in 2025 at one per cent growth.
The report said: “Economic growth in Hampshire over the next three years is projected to be considerably slower than the 2.1 per cent p.a. (per annum) growth rate observed in the pre-pandemic decade.”
The Office for Budget Responsibility (OBR) forecast suggests that the UK economy will expand by 0.7 per cent in 2024, considerably slower than the 1.8 per cent forecast in the spring budget.
Economic activity and employment saw a robust increase in June 2023 compared to the previous year, driven by a rise in employee numbers.
Self-employment in Hampshire increased despite the cost-of-living crisis affecting the sector, papers said.
There are an estimated 66,000 working-age self-employed people in the county area, just under one in 10 of the workforce and rising to 100,000 for Hampshire and the Isle of Wight.
The OBR expects the UK labour market to continue softening, with employment growth forecasts to stall in 2024.
Under the weight of high interest rates and slower economic growth, unemployment is expected to peak at 4.6 per cent in the second quarter of 2025.
This is more optimistic than the latest Bank of England November forecast, which expects unemployment to reach five per cent in 2025.