Productivity and economic growth in the East Midlands

Daniel Harari

The topic of this debate was selected by the Backbench Business Committee. The debate will be opened by James Naish MP.

The Library statistical briefing Regional and National Economic Indicators provides economic indicators for the East Midlands and other regions and countries of the UK. A short summary of key economic data for the East Midlands is presented here in advance of this debate.

GDP growth

The value of economic output, as measured by gross domestic product (GDP), in the East Midlands was £157 billion in 2023, accounting for 5.8% of the UK’s GDP. These figures are from the Office for National Statistics (ONS) and are the most recent available.

From 2009 to 2023, GDP growth was a little lower in the East Midlands than the UK average. In total, GDP increased by 21.9% over this period in the East Midlands, compared with 24.5% in the UK overall.

Chart showing annual East Midlands and UK GDP per growth from 2007 to 2023

Source: ONS, Regional economic activity by GDP, UK: 1998 to 2023, Apr 2025, figure 1

GDP per person in the East Midlands was £31,446 in 2023, below the UK average of £39,403. It was the third lowest among the 12 UK regions and countries, although the West Midlands (£32,077), Yorkshire and the Humber (£32,625) and Northern Ireland (£32,944) were only slightly higher.

The population of the East Midlands was estimated at 5.1 million in 2024.

Structure of the economy

Manufacturing makes up a greater share of the East Midlands economy than any other region or country in the UK, except for Wales. In 2023, manufacturing accounted for 14.8% of GDP in the East Midlands, much higher than the UK average of 9.1%.

In contrast, the information and communications sector makes up a smaller share of East Midlands GDP (3.0%) than the UK average (5.9%), as does the financial services sector (3.5% in the East Midlands and 8.8% in the UK).

Productivity

In terms of labour productivity, the East Midlands was 14.7% less productive than the UK average in 2023, based on the headline measure of output per hour worked. This was third lowest among all 12 regions and countries of the UK, though very similar to the North East (14.6% below the UK average), West Midlands (14.8% below) and Wales (15.1% below).

This difference between the productivity level in the East Midlands and the UK average has not changed much since the mid 2000s, as the chart below shows.

Chart showing East Midlands productivity level compared with the UK average from 1998 to 2023

Source: ONS dataset, Regional productivity time series, June 2025 edition

A November 2025 report by The Productivity Institute, a research organisation, provided an assessment of productivity in the Midlands, including identifying several challenges and proposing solutions.

Government approach

The government set out the steps it is taking to support the economy of the East Midlands in a November 2025 answer to a parliamentary question.

Economic Situation: Nottinghamshire
6 November 2025 | UIN 86391

Asked by: Juliet Campbell

To ask the Chancellor of the Exchequer, what steps she is taking to support the local economy in (a) Broxtowe and (b) Nottinghamshire.

Answering member: Lucy Rigby | Department: Treasury

The government’s approach to regional growth will drive growth in towns, city regions and communities and make the most of the opportunities in each part of the country, to make everyone better off. There is excellence right across the country and this government is backing it: lifting living standards and putting more money in people’s pockets.

The region will benefit from the £2bn investment for the East Midlands Combined County Authority (EMCCA), delivering a new mass transit system to connect Derby and Nottingham. We have also recommitted £160m over 10 years for the East Midlands Investment Zone and confirming support for East Midlands Freeport. Local partners expect the East Midlands Investment Zone to generate £383m in private sector investment and deliver 4,200 jobs.

Further, as announced by the Chancellor at the recent Regional Investment Summit, Homes England will soon launch the procurement for a partner for the Broad Marsh regeneration project in Nottingham city centre, supported by the mayor Claire Ward.