A year on from the Birmingham Economic Review 2024, we look at the findings of the report ahead of the launch of the Birmingham Economic Review 2025.
The Birmingham Economic Review 2024: Summary provides a compelling snapshot of Greater Birmingham’s economic landscape as of November 2024.
Last year’s review—produced by City-REDI at the University of Birmingham in partnership with the Greater Birmingham Chambers of Commerce—pulls together the data, insights, and opportunities that will shape the region’s next chapter.
Key Themes & Highlights
1. A Year of Hopeful Recovery
The national economy is stabilizing: the Office for Budget Responsibility projects GDP growth at 1.1% in 2024, followed by 2.0% in 2025 and 1.8% in 2026.
Greater Birmingham’s contribution to the UK economy is robust:
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Gross Value Added (GVA) reached £60.78 billion in 2022, representing 2.7% of UK total.
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Notably, GVA grew 9.7% since 2021, signalling substantial recovery.
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- Export resilience: Q2 2024 goods exports from the West Midlands hit £8.8 billion, up 1.4% year-on-year and 16% above pre-pandemic levels.
- Business confidence is notably optimistic: In Q3 2024, 65% of businesses expected turnover increases and 57% anticipated profitability gains over the coming year.
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Interest rates dipped in August 2024—the first cut since 2020—but remained high at 5.0%, with expectations of persistence at elevated levels.
2. Demographics & Workforce
Greater Birmingham is a vibrantly young and diverse city:
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22.1% of residents are aged 0–15 (compared to 18.5% nationally), and 51.4% identify as Black, Asian, or Minority Ethnic.
Educational attainment lags slightly:
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6.5% of working-age residents lack formal qualifications (vs. 6.2% national average); and only 43.2% hold RQF 4+ qualifications (vs. 46.7%). However, the gap is narrowing.
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Economic inactivity, though reduced, remains high at 23.7% in 2023, contributing to a tight labour market.
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Earnings are rising: median weekly pay grew from £498 to £544 between 2022 and 2023—a 9.2% increase, compared to an 8.0% rise across the UK.
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Child poverty remains a pressing challenge: as of 2023, over a third of children are in relative poverty, while 1 in 4 are in absolute poverty
3. Catalysts for Growth
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HS2 rail infrastructure is progressing, boosting connectivity to London via Curzon Street.
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Devolution gains give the West Midlands Combined Authority greater control over skills and funding through a “single settlement” model, with more powers expected in the future.
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Foreign Direct Investment (FDI) thrives: in 2023–24, the West Midlands matched the South East with the joint-highest number of FDI projects outside London (133), resulting in 7,581 new jobs—the most of any UK region outside the capital.
Why This Report Matters
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Data-driven clarity: Offers a clear, evidence-backed lens on regional economic health and progress.
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Policy & investment insights: Equips stakeholders—ranging from policymakers to businesses—with critical context for informed decision-making.
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Forward-looking optimism: Despite external shocks (pandemic, Brexit, geopolitical shifts), Greater Birmingham displays meaningful economic resilience bolstered by strategic infrastructure and investment.
Book your place at this years Birmingham Economic Review 2025.
Disclaimer:
The views expressed in this analysis post are those of the authors and not necessarily those of City-REDI / WMREDI or the University of Birmingham.