A SCOTTISH city is set to grow faster than the UK average over the next two years.
A major forecast by accountancy group PwC and the think tank Demos found that while Aberdeen is facing challenges such as a decline in the working age population and a reduction in oil and gas jobs, the city is set to outperform its rivals in terms of growth.
The annual Good Growth for Cities Index ranks the economic prospects of 51 population centres in the UK.
It predicted that the Scottish economy would grow at 1.1% in 2024, increasing to 1.9% in 2025.
Scotland comes in slightly ahead of the UK average growth, which is predicted at 1% for 2024 and 1.7% for 2025.
However, Aberdeen is set to record growth higher than the UK average, with 1.2% this year and 1.8% in 2025.
PwC said that while the city had fallen six places compared to last year’s forecast, it was set for success “driven by projected growth in the professional, scientific and technical sector”.
In contrast, Edinburgh rose six places to ninth overall and Glasgow climbed four places to 31st.
Jason Morris, of PwC Scotland, said: “The latest Good Growth for Cities Index demonstrates a tale of three cities in Scotland.
“While all three are united in their overarching strengths including skills and the ratio of house-prices-to-earnings, when we look at performance across the indicators in the context of what members of the public place the most value in, the picture looks slightly different.
“Strength in skills and the relative affordability of housing demonstrate that we have the foundations laid to enable Scotland to attract new talent and retain its existing strong skills base.
“However, there is a need to address the public priorities for Scots highlighted in the Index which underline some key disparities across our cities. Our polling showed that Scots place importance on income, equality of income distribution, safety and work-life balance.”
However, Morris added that Aberdeen, Edinburgh and Glasgow were all facing challenges when it comes to health inequalities and skills.
He said: “The prime opportunity is for local authorities, businesses, devolved and national governments to work together to address skills shortages around emerging tech and digital, as well as energy transition and financial services, while investing in the fabric of our cities and addressing key challenges around health inequalities and new business — in order to create a fair and thriving Scottish economy.”
