Last year saw North Eastern entrepreneurs being urged to reinvigorate the economy so that the area can be better prepared for any Brexit outcome.
Given the economic and political climate of the UK, this looks to be no easy task. But could this year be a prosperous one for our region, despite this?
To find out, we explore the three main influences over growth in the North East.
Investment Funds
Investment services provided by NEL Fund Managers have helped the company to achieve exactly what it set out to do: fortify the local economy. The Newcastle-based agency gives financial backing to ambitious businesses across the North East. It also looks set to gain a healthy return on investment during its lifetime – money that will be put back into regional businesses.
Set up in 2010, the service has helped to generate more jobs in the North East. This in turn has contributed to the rise in employment rates that brought the area up to the national average of 75.6% in May last year. Thanks to this initiative, financial prospects look a lot brighter than in many other parts of the UK.
Outside of the area, other platforms like OANDA also enable North Eastern businesses to thrive in their industry.
Property Prices
Property prices can affect the economy of an area massively. However, whilst the North of England – and in particular the North East – has long been associated with cheap housing, according to estate agent Savills, we could see this trend reverse.
In fact, house prices are expected to rise sharply over the next five years. Our region could even see an increase of 17.6%. Whilst this may seem positive for people wanting to sell or invest in property, it’s worth noting that the effect that Brexit will exert over the housing market remains uncertain.
Brexit
Our withdrawal from the EU is expected to take place in March – and experts predict that it may have a huge impact on the North Eastern economy.
Because 60% of trade in the region is done with the EU, it is paramount that those with a stake in it remain informed on the changes in Britain’s relationship with Europe.
Therefore, for employees, business owners and investors alike, staying on top of Brexit news could result in being better prepared for any financial shocks. In addition, this could help North Easterners be ready for keeping up to date with charges, customs barriers and health and safety requirements.
Nobody knows what the future holds. But when it comes to making the right investment, choosing the right time to sell a property, or setting up a business, preparation is imperative. With our advice on relation to the North East, you can make sure that you are completely ready to make the most of the financial landscape for 2019.