Regional economic activity by gross domestic product, UK: 1998 to 2022

• Real gross domestic product (GDP) for the UK increased by 4.3% in 2022; all International Territorial Level (ITL) 1 regions reported positive growth in 2022, continuing the economic recovery following the coronavirus (COVID-19) pandemic.

• Of the ITL1 regions, London experienced the largest increase in real GDP in 2022 at 4.9%; the smallest increase was seen in the East Midlands at 1.8%.

• At the ITL1 level, London had the highest GDP per head in current market prices at £63,407 in 2022, while the North East had the lowest GDP per head at £26,747.

• Of the ITL3 regions, Luton showed the largest increase in real GDP in 2022 at 19.7%, while the largest decrease was registered in Na h-Eileanan Siar at negative 4.3%.

• At the ITL3 level, Camden and City of London had the highest GDP per head in current market prices at £599,588 in 2022, while Ards and North Down had the lowest GDP per head at £17,635; both extremes are substantially affected by commuting flows.

UK gross domestic product (GDP), in chained volume measures, was estimated to have increased by 4.3% in 2022. This increase continued the economic recovery following the coronavirus (COVID-19) pandemic, which caused widespread business closures and restrictions on the mobility of consumers.

Of the four countries in the UK, England showed the largest increase in real GDP in 2022 at 4.2% (Table 1). Northern Ireland saw the smallest increase in real GDP of 3.0% between 2021 and 2022.

Notes

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

2. 2022 data are provisional.

3. Population estimates are sourced from our Population Estimates for UK bulletin.

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, all countries and regions showed positive growth in real GDP between 2021 and 2022. The only decrease in real terms was seen in Extra-Regio, economic activity that cannot be assigned to a mainland region or country of the UK.

The largest increase in real GDP in 2022 was seen in London at 4.9%, followed by the South East at 4.8%. The smallest increase in 2022 was seen in the East Midlands at 1.8%, followed by the West Midlands at 2.8%.

Figure 1: All UK countries and regions saw positive growth in real GDP between 2021 and 2022

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.

When ordered by gross domestic product (GDP) per head in current market prices, the highest 10 International Territorial Level (ITL) 3 areas in 2022 were in the London, South East, Scotland, North West or South West ITL1 regions (Table 2). The top five areas were all within the London region. Berkshire is the highest area outside London, now sixth.

The lowest 10 ITL3 areas now cover 7 of the 12 ITL1 countries and regions, with only the North East, Yorkshire and The Humber, East Midlands, South East and Scotland not represented in 2022.

In real terms, 163 of the 179 ITL3 areas experienced an increase in GDP between 2021 and 2022. The largest increases were in Luton (19.7%), Lambeth (17.1%), and Haringey and Islington (16.8%).

Of the 16 ITL3 areas that saw decreases in real GDP in 2022, the largest decreases were in Na h-Eileanan Siar (negative 4.3%), Scottish Borders (negative 3.9%), and South and West Derbyshire (negative 3.9%).

By the end of 2022, 101 of the 179 ITL3 areas had recovered to the extent that their real GDP exceeded its pre-coronavirus (COVID-19) pandemic level. The areas with the highest growth since 2019 were Telford and Wrekin (18.6%), and Thurrock (13.9%).

The ITL3 areas where real GDP remained furthest below its 2019 level at the end of 2022 were Harrow and Hillingdon (negative 18.9%), and Hounslow and Richmond upon Thames (negative 18.3%).

Notes

1. Data for all ITL3 local areas are included in our Regional gross domestic product: all ITL regions dataset.

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. 2022 data are provisional.

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

6. Population estimates are sourced from our Population Estimates for UK bulletin.

7. “Real GDP” is GDP in chained volume measures.

Figure 2 allows users to explore how gross domestic product per head in current market prices has varied among local authorities between 1998 and 2022.

Figure 2: Gross domestic product per head for UK local authorities, 1998 to 2022

Notes:

1. The City of London and Westminster are not shown on the map because these regions’ GDP per head are large outlier values.
2. Natural breaks have been used to classify the data into ranges.

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.

International Territorial Level (ITL)

The International Territorial Levels (ITL) system, shown on our Open Geography Portal web page, is 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 gross value added (balanced) QMI.

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 2021.

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 taken on improved data from the business enterprise research and development (BERD) survey. In previous BERD statistics, up to the 2020 reference period, it was established that there was undercoverage, particularly of small businesses. Last year we applied an uplift approach as an interim measure. For 2022 we have a new sample, that has increased the volume of data received and ensured that the BERD statistics now better reflect the level of research and development (R&D) performed across the UK economy. Further information about this change can be found in the statistical bulletin Business enterprise research and development, UK: 2022.

This release includes improvements to the measurement of non-market education output at the International Territorial Level (ITL) 3 and local authority levels. These changes mirror those adopted at the ITL1 and ITL2 levels in last year’s release, in apportioning non-market education using a direct volume method similar to that used in the National Accounts. Instead of apportioning output based on workforce data, these changes result in output being apportioned based on the number of pupils receiving an education by different school types, weighted by the cost of educating those pupils in different school types. Further information about the direct volume approach is available in Measuring subnational education output.

Several further improvements have been made to the estimation of non-market education output, reflecting changes incorporated in the education output measure from our Public Service Productivity statistics. These improvements include updates to the data used for cost-weighting activity, improvements to the treatment of academies and improvements to the measurement of pre-primary education to reflect recent expansions in childcare entitlement.

We have also improved the measurement of financial intermediation services indirectly measured (FISIM) within the banking industry. Working with colleagues from the Bank of England and the UK National Accounts, we have introduced new methods to better align regional estimates to the corresponding UK estimates, improving coherence between the national and regional accounts. We have also taken on improvements to the measurement of banks’ FISIM identified and implemented by the Bank of England to improve the quality of our regional estimates.

We have published revisions triangles for GVA in:

• our Revisions triangles: regional gross value added (balanced) in current basic prices dataset

• our Revisions triangles: regional gross value added (balanced) in chained volume measures dataset

National Statistics

Data included in this release are designated as National Statistics, which means they have been assessed by the Office for Statistics Regulation as fully compliant with the Code of Practice for Statistics.

Quality information

Figures for 2022 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 2022 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: 2023.

Following Census 2021 in England and Wales we now have rebased estimates for the years between censuses (2012 to 2020). Population data for Northern Ireland are also entirely up to date. However, population data for Scotland are subject to additional delay as their census was itself delayed by a year. As a result, there is a potential discontinuity in the population estimates for areas of Scotland between 2021 and 2022. Critically, we do not yet have population estimates for the further breakdown of Scottish Councils needed to produce some ITL2 and ITL3 regions of Scotland. We have therefore suppressed any estimates of gross domestic product (GDP) per head for 2022 for affected areas of Scotland from this publication. We strongly advise users to exercise caution in the use of Scottish GDP per head until the entire time series is available on a consistent basis.

More information regarding the quality of these estimates can be found in the Regional gross value added (balanced) QMI.