Cardiff & Swansea Set to Rank Amongst Highest-Growing UK Cities, According to PwC Report
11 September, 2024
Cardiff is poised to experience significant economic growth, ranking among the highest-growing cities in the UK, second only to London, according to the annual Demos-PwC Good Growth for Cities Index. The report, produced by PwC, a member of FinTech Wales, projects that Cardiff’s Gross Value Added (GVA) will grow at 1.3% in 2024 and 2.0% in 2025. Swansea is also expected to see growth at 1.0% and 1.7% for the same period.
The high growth forecast for Welsh cities can be attributed to their sectoral composition, with strong contributions from manufacturing, health and social work, finance and insurance, and public administration and defence—sectors expected to experience above-average growth in the coming years.
The Demos-PwC Good Growth for Cities Index ranks 51 of the UK’s largest cities, assessing them on 12 economic measures including jobs, health, income, skills, and work-life balance. Cardiff ranks 13th in the index, with Swansea placing 42nd. While Cardiff performs well in areas such as owner occupation, work-life balance, and income distribution, it falls below the UK average on metrics related to income, health, and high streets.
John-Paul Barker, Regional Market Lead for PwC in the West of England and Wales, commented:
“This year’s Index identifies a clear reason for leaders in Cardiff and Swansea to be optimistic: the areas of the economy in which we are most active are enjoying periods of growth, and we’re due to experience economic growth significantly faster than the UK average.
Ensuring that economic growth is sustainable and inclusive will depend on the expertise and collaboration of our devolved and local leaders. High streets, support for new businesses, and health are key concerns.”
The report underscores the importance of creating sustainable and inclusive growth strategies. PwC’s Framework for Growth research highlights a potential £923 billion uplift to the UK economy by 2035 if a successful industrial strategy is adopted. For Wales, a critical area of focus is the energy transition, with potential to position the region as a hub for new energy technologies.
Rachel Taylor, Government & Health Industries Leader at PwC, added:
“Raising prosperity across the UK is needed more than ever as we continue to see growing inequality in housing, jobs, and education. If we are serious about economic growth as a country, we need to provide people and places with the foundations on which they can fuel that growth—access to jobs, skills, education, and affordable homes.”
The report also highlights concerns about the housing market, with the UK-wide house price-to-earnings ratio seeing the largest decline in performance. The average house now costs more than eight times the average earnings, compared to just four times in the 1990s. Cities such as London, Birmingham, Manchester, and Newcastle, which have the largest social housing waiting lists, are among the lowest performing in the index.
As Cardiff and Swansea look forward to continued economic growth, the focus remains on ensuring that this growth is equitable and sustainable, with opportunities for all residents to benefit from rising prosperity.
