Importance of sustained economic growth, - Essay Example

As far as South West region is concerned, the percentage share of the region in UK’s total GVA for the year 2012 has been 7.3 percent, which does not reflect a significant rise in it in comparison with the previous years’ GVA. Analysis of the Trends in GVA, GVA per Head and GVA per Head Indices for South West Region (1997 – 2012) Keeping in view the data pertaining to the gross value added by South West, there has been a sustained increase in the workplace based GVA at current basic prices on a year on year basis (See Appendix II).

Similarly, this consistency has been maintained in the GVA per head also. The trends in these variables have been graphically presented as follows: For both GVA and GVA per head, there have been increasing trends noted in the time period under consideration. Particularly from 1997 to 2007, the increase in the growth for GVA has been higher and the rate of growth has declined a bit from 2007 and onwards. These trends are true for both GVA and GVA per head. . In addition to this, the performance of the region with respect to the gross value added has been influenced by various factors which include supply chains, availability of credit, policies and regulations, etc.

Sustained Economic Growth in South Western England and Future Economic Rebalancing Keeping in view the slow recovery shown by the economy in the post economic crisis period, it can be stated that there are various factors which are important for sustained growth in South Western England, while considering the future economic rebalancing. In general, it is the overall economy of the UK which influences the performance and growth for regional economies. However, as noted by the South West Observatory (2011), there are two main factors which are expected to influence sustainable growth in SW England.

These factors include, “Regional Output Growth Prospects (GVA, Constant Price)” and “Regional Employment Prospects (Full Time Equivalent)” (South West Observatory, 2011). Based on the overall macroeconomic conditions of the UK’s economy, South West Observatory (2011) has made forecasts of the economic growth in the region. Similar to the trends noted in other regions of England, the trends for Regional Output Growth and Regional Employment for SW England in 2008-2009 declined sharply, owing to the global economic downturn.

However, recovery was noted in the following period, 2009-2010, which was then projected to be followed by a declining trend in the period 2010-2011. Although economic experts and forecasting agencies have argued that extreme weather conditions has stirred up the decline in economic growth indicators for UK in the post crisis period, but the tightening of fiscal