Regional GDP

Experimental quarterly GDP and productivity data for the North East region including GDP by industry

Gross domestic product (GDP) measures the value of goods and services produced in an area and/or by a specific sector. It provides estimates of the size of and growth in the economy. At a local level, GDP data is only available annually with a current time lag of over a year. However, the Office for National Statistics (ONS) publishes a quarterly summary of GDP within the countries of the UK and the nine English regions. This has a time lag of about seven months after the latest quarter it relates to.

Regional quarterly GDP is presented as an index with the 2016 value of GDP for an area set at 100. This means that differences in the rates of change in GDP can be compared but not the relative levels of economic activity. 

According to the latest data for the North East region, which includes the North East and Tees Valley LEP areas, in the fourth quarter (Q4) of 2020:

  • North East regional GDP was at just over 94% of its level in 2016, up from just under 93% in Q3 and about 80% in Q2
  • overall, the region's Q4 2020 GDP was 6.1% below the level in Q4 of 2019, a slightly smaller decrease than for England (-6.5%)
  • the decrease was the median among the nine English regions, with the West Midlands having the largest percentage decrease (-11.1%)
  • in the North East region, during 2020, a 3.4% decrease in GDP in Q1 was followed by a larger 17.3% decrease in Q2
  • these decreases were followed by a 15.7% increase in Q3 and a 1.6% increase in Q4
  • in Q2 of 2020, all English regions had large decreases in GDP (in the range 17-21%) but the North East's decrease was the second smallest
  • however, over the three years prior to the impact of Covid-19, the value of the GDP for the North East had barely increased
  • in Q4 of 2019, North East GDP had been only 0.3% above the 2016 level, while England's GDP had been 5.8% higher

Within different industry groups in the North East region, between Q4 of 2019 and Q4 of 2020: 

  • the largest percentage decrease in GDP had been in accommodation and food service activities (-34%)
  • GDP had also fallen sharply in many other areas of the service sector
  • these included household activities; arts, entertainment and recreation; and education
  • there had also been large percentages decreases in the GDP of mining and quarrying and of construction
  • there had been increases in GDP in only three industry groups, most notably in information and communication.

The ONS have produced new quarterly estimates of regional productivity based on indices comparing economic output (GVA), hours worked and productivity (GVA per hour) with averages in 2019. The first release includes data for all four quarters of 2020. This shows that, in the North East region:

  • Productivity decreased in Q1 of 2020 as output decreased at a faster rate than the fall in total hours worked
  • hours worked and output both decreased massively in Q2 of 2020 but productivity increased slightly as the fall in hours was larger
  • in Q3 of 2020, the increase in output was much larger than in the increase in hours worked, pushing productivity well above the 2019 level
  • however, hours worked increased by more than output in the last quarter of 2020 leading to a fall in productivity

Productivity decreased in all nine English regions between Q3 and Q4 of 2020, having risen in all nine in the previous quarter. Comparing the latest quarter to 2019:

  • The North East has had the largest percentage decrease in productivity
  • this is a result of the North East's total of hours worked decreasing by a smaller percentage than in any other region
  • combined with the region having the fourth largest decrease in output
  • the three regions in the south of England and the North West region all had higher productivity in Q4 of 2020 than in 2019.

Regional differences in changes of productivity reflect differing impacts from the "allocation effect".  This effect is due to industries with relatively higher levels of productivity temporarily making up a larger proportion of the economy as many shutdown industries tend to have lower levels of productivity. 

GDP index (2016=100), from Q1 2016 onwards, North East region, England

Last updated:
03/08/2021
Published by:
North East LEP

Source: GDP, UK regions and countries [ONS, last updated on 3 August 2021]

Data information:  These are experimental statistics, subject to revisions as methodology and systems are refined.

Regional data can be volatile and quarterly movements should be considered alongside the long-term trend.

Based on the North East region, which includes the North East and Tees Valley LEP areas. 


GDP, percentage change on previous quarter, Q4 2019 onwards, English regions

Last updated:
03/08/2021
Published by:
North East LEP

Source: GDP, UK regions and countries [ONS, last updated on 3 August 2021]

Data information:  These are experimental statistics, subject to revisions as methodology and systems are refined.

Regional data can be volatile and quarterly movements should be considered alongside the long-term trend.

Based on the North East region, which includes the North East and Tees Valley LEP areas. 


GDP, percentage change since Q4 2019, English regions

Last updated:
03/08/2021
Published by:
North East LEP

Source: GDP, UK regions and countries [ONS, last updated on 3 August 2021]

Data information:  These are experimental statistics, subject to revisions as methodology and systems are refined.

Regional data can be volatile and quarterly movements should be considered alongside the long-term trend.

Based on the English regions. The North East region includes the North East and Tees Valley LEP areas. 


GDP, percentage change since Q4 2019 by industry, North East region

Last updated:
03/08/2021
Published by:
North East LEP

Source: GDP, UK regions and countries [ONS, last updated on 3 August 2021]

Data information:  These are experimental statistics, subject to revisions as methodology and systems are refined.

Regional data can be volatile and quarterly movements should be considered alongside the long-term trend.

Based on the North East region, which includes the North East and Tees Valley LEP areas. 


Output per hour, GVA and hours worked (compared to 2019), North East region Q1 to Q4 2020

Last updated:
05/08/2021
Published by:
North East LEP

Source: Labour productivity for UK countries and regions, quarterly [ONS, last updated on 4 August 2021]

Data information:  These are new experimental statistics, subject to revisions as methodology and systems are refined.

Regional data can be volatile and quarterly movements should be considered alongside the long-term and UK trends.

Based on the English regions. The North East region includes the North East and Tees Valley LEP areas. 


Output per hour, GVA and hours worked (compared to 2019), English regions Q4 2020

Last updated:
05/08/2021
Published by:
North East LEP

Source: Labour productivity for UK countries and regions, quarterly [ONS, last updated on 4 August 2021]

Data information:  These are new experimental statistics, subject to revisions as methodology and systems are refined.

Regional data can be volatile and quarterly movements should be considered alongside the long-term and UK trends.

Based on the English regions. The North East region includes the North East and Tees Valley LEP areas.