Newspaper article The Journal (Newcastle, England)

Brexit Recovery Harder for North East - Study

Newspaper article The Journal (Newcastle, England)

Brexit Recovery Harder for North East - Study

Article excerpt

Byline: BREXIT GRAEME WHITFIELD graeme.whitfield@trinitymirror.com

ALL areas of the North East would be hit by Brexit and may take longer to recover than other parts of the country, a new study says.

The study by the Centre for Cities and the Centre for Economic Performance (CEP) at the London School of Economics predicts that economic output in the North East would be between 1.1% and 1.4% lower in the event of a "soft" Brexit, but this would almost double to 2%-2.6% if the Government opts for a "hard" Brexit. The study finds that the North East, which mostly voted in favour of leaving the EU, would not be as hit as badly as the South in the decade after Brexit. But it adds that areas such as the North East will be less able to adapt to the shock to their economies and will find it harder to recover aftwards.

Andrew Carter, chief executive of Centre for Cities, said: "Contrary to much of the received wisdom on Brexit, it is the most prosperous UK cities which will be hit hardest by the downturn ahead, but poorer places across the North and Midlands will find it tougher to adapt.

"First and foremost, the government should do all it can to minimise the coming economic shocks by securing the best possible trade deal with the EU. That means ensuring that our post-Brexit trading arrangements are as close to our current relationship with Europe as possible. "But it's also critical that the government uses its forthcoming industrial strategy to give cities across the country the investment, powers and responsibilities they need to make their economies as successful and competitive as possible. …

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