County's economy set for growth, economists say
Economists remain confident that Shropshire's economy is on track to grow over the next five years.
The West Midlands Economic Forum has produced a new set of figures suggesting that the combined economies of Shropshire and Telford could expand by more than £3 billion by 2021.
However, the group added that a failure by negotiators to secure a "benign transition agreement" for the UK's withdrawal from the EU could hamper growth.
The report suggests that growth this year could be about 3.8 per cent, with the same figure next year, up to 3.9 per cent in 2019, 4.9 per cent in 2020, and a strong 5.1 per cent in 2021. That would take the combined output of the county's two authorities to £12.7 billion.
That would mean the county slowly catching up with the wider West Midlands, and running far faster than the UK as a whole, whose GDP it sees as growing by 1.8 per cent this year, then 2.1 per cent, 2.5 per cent, 2.6 per cent in 2020 and 2.9 per cent in 2021.
"Despite slightly slow growth in the challenging period after the recession, WMEF sees growth in Shropshrie and Telford & Wrekin picking up from 2016 onwards," the report by economist Rebecca Jones and head of research Paul Forrest said.
"This robust performance is also suggested by the recent regional PMIs, which show the West Midlands outperforming the UK.
"In particular growth prospects are likely to be buoyed by anticipated developments along the M54 corridor, which will remain one of Britain's major export routes and continued intensive investment in advance manufacturing across the corridor."
It added that the depreciation of the pound would see the currency settle in a new range of between $1.20 and £1.30, and tyhat that would aid exports and stimulate for UK-made components locally.
The report added: "Strong growth in foreign direct investment in the area in 2016-17, including Magna International's investment in Telford, will have a positive impact on the region's future output since the actual investment will provide a boost to the economy, as well as the associated multiplier effect.
"The industries of advanced manufacturing and the expansion of manuservices will be key growth areas for the area in the coming years."
