Aberdeen City Council hosted the inaugural State of the Cities Conference on Friday, 2 November 2018 where the Economic Policy Review of Aberdeen was launched.
The first annual report by the independent panel formed to advise on the Aberdeen city region’s economic performance has cited an outlook of “cautious optimism” and highlighted the potential for growth in the years ahead.
The Council formed the Economic Policy Panel in 2017 with a remit of evaluating and advising on the economic performance of the city and the region.
A national recruitment exercise led to the appointment of a panel of specialists who have set out their findings against the backdrop of the challenges the region faced due to the fall in global oil prices from 2014 and the measures taken in response.
The Economic Policy Panel report, co-authored by Dr Hanan Morsy and Douglas Peedle, notes:
Please click here to view the Aberdeen Economic Policy Panel Review Summary.Please click here to view the Aberdeen Economic Policy Panel Review in full.
- The North-east economy is emerging from a difficult economic period with the potential to return to moderate growth in the coming years;
- The Panel heard consistent evidence of cautious optimism and signs that economic conditions were gradually improving;
- GVA per head in Aberdeen remains the highest in Scotland;
- The region continues to perform strongly in export markets, with around 21% of the value of Scottish exports coming from the North-east;
- Emerging signs of improvement in the labour market, with employment rates recovering and rising from 70% in Aberdeen in 2016 to 76% in 2018;
- The first rise in the number of jobs being supported by the UK offshore oil and gas sector since the downturn in 2014, increasing to 282,700 in 2018 from 280,000 in 2017;
- Stability returning to the local property market, suggesting the decline in house prices may have bottomed out;
- Independent growth forecasts of between 1-1.5% per annum until 2020, against the Scottish range of 0.85-1.7% and the UK range of 1.4-2.0%.