The higher growth forecast for rural regions is partly driven by the life sciences and advanced manufacturing industries in less urbanised regions in the East of England and the Midlands.
Josie Dent, Senior Economist at CEBR, said: ‘Many industries focused in urban areas, such as banking and insurance, are set to suffer when the UK leaves the EU. We forecast that the historic pattern of urban areas enjoying higher GVA growth than rural areas is set to reverse, and that rural areas will see their economies grow at a faster rate than urban areas between 2019 and 2023.’
However, the report warns that the success of the rural economy depends on its ability to diversify in the future. This includes focusing on supporting small businesses as well as promoting environmentally friendly initiatives.
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