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GDP (sub-regional)

Gross Domestic Product, the value of goods and services produced in the North East and its local authority areas.

Productivity Newcastle North Tyneside South Tyneside Durham Gateshead Sunderland Northumberland
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North East Gross Domestic Product (GDP)

In 2022, the North East's GDP was about £54 billion. Almost half of the North East LEP's total GDP was from Durham and Newcastle, though this is influenced by the flow of commuters across the region and Newcastle in particular receives a high inflow of commuters from elsewhere in the region.

North East GDP in 2022 was more than twice what it was in 1998, the first year of the dataset. The latest totals in England and England excluding London were 2.5 times higher than in 1998. The difference in growth rates was more noticeable during the second half of this period.

The latest North East GDP total was about 2.5% of the England equivalent or 3.4% if London is excluded. These proportions have decreased during the most recent decade.

The effects of COVID on GDP

GDP in the North East in 2022 was 10% higher than a year earlier, as the economy continued to recover from the impact of COVID in 2020. This was a slightly higher increase than in England excluding London (up 9.7%) and the third highest among the eight core city areas. Within the North East, the increase was highest in Northumberland, Newcastle and North Tyneside and lowest in Gateshead.

Over the wider period of 2012 to 2022, percentage growth in North East GDP was the lowest among the core city areas. During that period, within the North East, percentage growth was particularly high in North Tyneside and Newcastle and was lowest in Gateshead and South Tyneside.

Adjusting for population size and inflation

GDP per head is used to compare the economies of areas with different populations. This is not a measure of productivity as it uses residential rather than workplace populations and does not take account of variations in employment levels or hours worked.

North East GDP per head in 2022 was just over £27,000. This was about 71% of the England rate (82% if London is excluded). It was the second lowest rate among the eight core city areas.

Within the North East, GDP per head in 2022 was highest in Newcastle and lowest in South Tyneside. Areas with large numbers of in-commuters tend to have higher GDP per head as more of their economic output is produced by non-residents.

In 2022, North East GDP per head was about 31% higher than a decade earlier. This was the smallest increase in the eight core city areas. Within the North East, the largest increase in GDP per head was in North Tyneside.

Real GDP per head is a statistic that allows changes in GDP over time to be measured with the effects of population change and inflation removed. By this measure, trends in North East GDP in recent years have mirrored the national equivalent, although at a lower level. 

Removing the effects of population growth and, especially, of inflation means that the 124% increase in North East GDP between 1998 and 2021 becomes a 36% increase in real GDP per head.

Further information

GDP is equivalent to:

Gross Value Added (GVA) plus VAT plus other taxes on products less subsidies on products.

Until recently, ONS statistics used GVA rather than GDP for sub-national areas. The local and regional estimates are now consistent with national accounts. The ONS provide a breakdown of local GVA by industry, the latest data for which is also from 2021.