The Aberdeen economy is expected to grow faster than the UK average over the next two years, according to a new report from accountancy giant PwC.
After several difficult years which have seen it slip to 37th in the nationwide Good Growth for Cities Index, the Granite City looks set to shoot back up the table in 2024 and 2025 thanks to its professional, scientific and technical sectors.
The city will soon become home to Great British Energy, the UK Government's new state-owned energy which will be capitalised with over £8billion.
The PwC index - which was published alongside the Demos think tank - predicts that the Scottish economy will grow at 1.1% in 2024 and 1.9% in 2025. This is broadly consistent with expected UK average growth of 1% and 1.7%, respectively.
Aberdeen will outperform its rivals with growth of 1.2% in 2024 and 1.8% in 2025. PwC said this would be “driven by projected growth in the professional, scientific and technical sector”.
The UK-wide report included a spotlight on Aberdeen, stressing its need to use its engineering know-how to diversify from North Sea oil and gas.
The authors highlighted the fact the city had the biggest decline in working-age population in Scotland and needed to “create attractive opportunities for people to learn, work and live in the region”.
The index was topped by Plymouth, Bristol and Southampton.
Despite the upbeat forecast, the current table shows Aberdeen languishing six places down from last year at number 37. Edinburgh, in contrast, rose six places to ninth overall and Glasgow climbed four places to 31st.
Dundee and Inverness are too small for the PwC-Demos report, which includes London boroughs as well as cities.
Jason Morris, of PwC Scotland, told the Times: “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.”