What is Hertfordshire's GDP? An Expert's Perspective

Hertfordshire is one of the most affluent regions in England, boasting an impressive Gross Domestic Product (GDP) of 45 billion pounds sterling. According to Table 2, the summary statistics for the four regions of the capitals, including London (Greater London Authority), Cardiff (Cardiff Capital Region), Edinburgh (Edinburgh Urban Region and South East Scotland), and Belfast (Belfast City Deal region) are quite impressive. When it comes to industrial groupings in linked volume measures, the UK saw significant increases in professional, scientific and technical activities (4.3%), information and communication (4.1%), administrative and support services activities (3.4%) and wholesale and retail trade (2.8%). On the other hand, there were a few industries that experienced a decline, with agriculture, forestry and fishing (-4.3%) recording the biggest drop, followed by the supply of electricity, gas, steam and air conditioning (-2.2%) and water supply; sewerage and waste management (-2.1%).

The only other industries that showed a decrease at the UK level were construction (-0.7%) and financial and insurance activities (-0.5%).In addition to NUTS1, NUTS2 and NUTS3 estimates of GDP, data from local authorities in the United Kingdom have also been published. This includes an additional division of Scottish Council areas to allow aggregation to local NUTS3 areas. Local authority estimates can be added to form other geographical breakdowns, such as combined authorities, local business associations (LEP), urban regions, and other economic and business regions. An innovative method has been used to produce the regional Value Added Balance (VAB) (B). This involves using weighted quality metrics to inform an automated balancing process.

This has improved the reliability and stability of regional GVA estimates, allowing for an expansion in the level of industrial detail for which we can provide estimates. As a result, we have also improved the timeliness of our offer of real GVA indices in one year, without taking into account the effect of price inflation. Regional GVA (B) is a workplace-based measure. The estimates of GVA (I) and GAB (P) that comprise it are compiled using a top-down approach. The supply and use tables (SUT) of the national accounts provide the national totals of 112 components of industry.

Regional indicator data sets are used to calculate regional proportions for each industry. These ratios are then used to allocate the total production of the United Kingdom and total intermediate consumption of the United Kingdom for each industry before calculating regional GVA (P) for each industry. In the case of GVA (I), like GVA (P), regional proportions are used to assign total UK figures to each sector but this time for revenue components of GVA and for a small set of aggregated industries. The only exception is the real estate sector where we have regional rental prices for NUTS1 countries and regions based on an experimental private housing rental price index. In conclusion, Hertfordshire's GDP is estimated at 45 billion pounds sterling, making it one of England's most prosperous regions. The region has seen significant increases in professional, scientific and technical activities, information and communication, administrative and support services activities, wholesale and retail trade as well as a number of declines in industrial clusters such as agriculture, forestry and fishing.

Tara Stewart
Tara Stewart

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