A NEW study has predicted that Bradford district's economy will remain static as the UK recovers from recession in the second half of this year.

The Irwin Mitchell City Tracker – produced by the Centre for Economics and Business Research – examines 50 locations across the UK, forecasting future growth in terms of the productivity measure Gross Value Added (GVA) and employment.

The report, which shows that the UK entered into a recession in the second half of 2022, expects economic growth generally to resume in the second half of this year.

But according to the research, the Bradford-district economy is estimated to be one of the hardest hit by the cost-of-living crisis – it demonstrated no signs of growth in the fourth quarter of last year, compared to the same period in 2021.

And looking ahead to its performance this year, the report estimates the economy will still be the same size at the end of 2023.

The study reveals better news on the jobs front. Employment levels in the district are increasing by 0.3 per cent year-on-year, with a total employment level of 222,200 estimated for the fourth quarter of this year.

Charlotte Rees-John, a partner at law firm Irwin Mitchell and head of its consumer sector, says: "Last year presented numerous challenges – and the downward pressure on spending activity, which continues to be concentrated in the consumer sector, looks set to continue throughout the first half of 2023.

"The consumer sector has however been one of the most resilient, agile and innovative sectors in recent times and those businesses that succeed this year will be in a very strong position to take advantage of a more stable economic environment in 2024."

She added: "Considering longer-term aspirations, such as a transition to carbon net zero, is something all businesses – irrespective of the sector they are in and the pressures they're facing – need to do. So-called Environmental, Social and Governance (ESG) is a non-financial factor that's fast becoming a priority for the majority, particularly at a time when there is huge pressure and scrutiny from consumers and investors who are increasingly making their decisions based on ethical as well as financial factors."

Josie Dent, of the Centre for Economics and Business Research, says: "2023 will be a difficult year for consumers and businesses across Yorkshire, with the cost-of-living crisis expected to lead to falling economic activity."