Cardiff’s economy is set for significant growth, with the city predicted to experience the biggest expansion of any major UK city and town outside London this year and next. New research from professional advisory firm PwC reveals that Cardiff’s gross value added (GVA) is forecast to increase by 1.3% this year and by 2.07% in 2025. This places Cardiff behind only London and some of its boroughs in terms of projected growth. Swansea is also expected to perform well on the GVA measure, with an estimated growth rate of 1.17% this year and 1.78% in 2025.
PwC attributes the high growth expectations for Cardiff and Swansea to their diverse economic sectors, including manufacturing, health and social work, finance, insurance, and public administration. These sectors are anticipated to experience relatively higher growth rates, contributing to the overall economic strength of both cities. Cardiff ranks third in projected GVA growth for 2025, behind London and its boroughs.
The Good Growth for Cities Index, comprising 12 economic measures, places Plymouth at the top, followed by Bristol and Southampton. Cardiff ranks 13th overall, while Swansea is placed 42nd. Despite performing well on metrics like owner occupation, work-life balance, skills, and income distribution, both cities lag behind the UK average in areas such as income, health, and high street quality.
John-Paul Barker, regional market lead for PwC in the West of England and Wales, emphasised the need for sustainable and inclusive economic growth. He highlighted the importance of devolved and local leadership in addressing key concerns such as supporting new businesses, revitalising high streets, and improving health outcomes. PwC’s research also underscores the public’s focus on financial wellbeing, with measures like income, jobs, and housing gaining significance.
The index’s findings reflect broader challenges facing UK cities, including growing inequality in housing, jobs, and education. Local and national cooperation is essential to address these disparities and create opportunities for sustainable growth. By investing in areas like jobs, skills, education, and affordable housing, communities can lay the foundation for shared prosperity and economic resilience.
In conclusion, Cardiff and Swansea’s economic prospects look promising, with both cities poised for continued growth in the coming years. The potential for increased investment, collaboration, and strategic planning offers opportunities to drive economic development, foster innovation, and enhance quality of life for residents across Wales.