Aberdeen was the only major city in the UK to grow its economy during the recession, according to a report published today.
The Granite City outperformed London and Edinburgh, the heartlands of the country’s financial sector, thanks to the continued strength of the oil and gas industry.
Accountancy network UHY Hacker Young analysed official calculations of gross value added (GVA) – the measure of a region’s contribution to the UK economy according to the value of the goods and services it produces – and found the oil capital of Europe was the only area where GVA per resident grew in 2009.
The organisation, which has 92 partners working from 19 locations across the UK, said this was the first time London had lost its economic edge in terms of productivity per person and economic growth.
UHY said GVA in Aberdeen was £28,731 per head in 2009, up 1.1% from £28,442 in the previous year.
Although London and Edinburgh’s GVA figures were higher than Aberdeen’s in 2009 – at £34,779 and £34,950 per head respectively – the figure for both cities had fallen. London’s GVA fell by 0.53%, while Edinburgh’s was down by 0.52%.
Tom Smith, chairman of Aberdeen City and Shire Economic Future (Acsef), said the UHY report highlighted Aberdeen’s major economic contribution and the strategic importance of the oil and gas industry.
He added: “It is vital that the Scottish and UK governments understand our economic significance and support us in building on this position of strength by developing the right infrastructure that will ensure we continue to attract, retain and develop the necessary skills, businesses and investment to secure our long-term future.”
Kate Yuill, of Aberdeen and Grampian Chamber of Commerce, said the report proved Aberdeen “continues to go against the grain” in the UK.
“For this buoyancy to continue we must see equal support from the public sector with investment in our infrastructure, including transport and broadband, to ensure Aberdeen city and shire can continue to be an economic driver for the UK,” she said.
Tom Faichnie, an Aberdeen-based corporate finance partner at UHY member firm Campbell Dallas, said: “While drilling in the North Sea was significantly curtailed in the period, the impact of this on the Aberdeen economy was less severe than other areas of the UK.
Mr Faichnie added that Aberdeen’s strength in international markets, especially with new oil and gas technology, had also helped its economy grow while other cities faltered.
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