According to EY’s latest Regional Economic Forecast, Leeds’ economy is expected to grow at an average annual rate of 1.7% between 2025 and 2028, slightly above the UK forecast of 1.6%. The city’s employment growth is also projected to surpass the national average, with a 0.8% annual increase. By 2028, Leeds’ economy is expected to be £2.5 billion larger than in 2024.
In contrast, Yorkshire and the Humber’s overall economic growth is forecast at 1.5% per year, trailing the national average. Employment growth in the region is also expected to be slower at 0.6% per year, compared to the UK’s 0.7%.
North Yorkshire is set to perform better, with projected economic and employment growth rates of 1.7% and 0.8% per year, respectively, driven by its expanding technology and construction sectors.
Across the region, manufacturing, wholesale and retail trade, and real estate are expected to be key economic contributors. However, rising energy and labour costs continue to pressure the manufacturing sector.
Sheffield, Wakefield, and the West Yorkshire Combined Authority are projected to be the region’s joint-second fastest-growing economies, each with a 1.5% annual growth rate. Barnsley and Doncaster are forecast at 1.4%, while York, Calderdale, Hull, Middlesbrough, and Bradford are expected to grow at 1.3%. Kirklees (1.2%) and Rotherham (1.1%) are forecast to have the slowest growth rates.
Yorkshire and the Humber business leaders are urged to focus on high-growth sectors, emerging technology, and the energy transition to attract investment and boost regional performance.
