Cardiff’s economy is set for a significant expansion, with forecasts indicating the largest growth of any major UK city or town outside of London in the coming year. This positive outlook extends to Swansea as well, with continued growth expected in both cities in 2025. Professional advisory firm PwC’s latest research reveals that Cardiff’s Gross Value Added (GVA) is projected to increase by 1.3% this year and by 2.07% in 2025. This growth rate places Cardiff just behind London and certain London boroughs in terms of economic expansion. Swansea is also predicted to perform well, with a GVA growth rate of 1.17% this year and 1.78% next year.
The research highlights the sectoral composition of the Welsh cities, noting a prevalence of economic activity in manufacturing, health and social work, finance and insurance, and public administration and defence. These sectors are expected to experience relatively higher growth, contributing to the overall economic prosperity of Cardiff and Swansea. PwC’s Good Growth for Cities Index evaluates 12 economic measures, encompassing areas such as jobs, health, income, safety, and skills, among others. Cardiff ranks 13th and Swansea 42nd in the overall index, with metrics reflecting strengths in owner occupation, work-life balance, skills, and income distribution, while showing room for improvement in areas such as income, health, and high street quality.
John-Paul Barker, PwC’s regional market lead for the West of England and Wales, emphasized the need for sustainable and inclusive economic growth. He highlighted the significance of effective regional leadership in addressing key concerns such as high street vitality, support for new businesses, and public health. The research also underscores the public’s increasing focus on financial well-being, with factors like income, jobs, and housing gaining prominence. The index findings reveal shifts in city performances, with disparities in housing affordability and income distribution becoming particularly evident.
Rachel Taylor, government and health industries leader at PwC, stressed the importance of addressing inequalities in access to education, jobs, and housing to uplift prosperity across the UK. Collaborative efforts involving local and national authorities, businesses, and the third sector are deemed essential to fostering sustainable economic growth. As the research sheds light on evolving public priorities and regional disparities, tailored local growth plans are advocated to address specific community needs and opportunities.
The study’s insights suggest a promising outlook for Cardiff and Swansea, underlining the potential for substantial economic contributions and benefits if strategic investments and agile approaches are adopted. With a focus on job creation, skills development, and affordable housing, the path towards inclusive economic growth appears contingent on cohesive strategies and concerted actions at both local and national levels.