Regional gross domestic product (pound per head
Following a number of years of strong growth, Coventry’s local economy has slowed down since 2016, increasing the impact of the financial challenges presented by the pandemic and the cost-of-living crisis. The total annual GDP in Coventry (the value of all economy activity within the city) stood at £10.723 billion in 2022 (the most recent data), which is a 3.5% contraction on the previous year’s figure.
When exploring economic output per head of population, measured in Gross Value Added (GVA), However, Coventry was the only Local Authority in the WMCA to see its GVA per-head fall between 2022 and 2021 (measured in 2019 prices), albeit it by less than 0.1% (across the WMCA region GVA per-head rose from £22,678 in 2021 to £23,318 in 2022).
Despite these challenges the city’s economy has many strengths. Coventry is home to some world class business clusters and retains a competitive advantage in some key industries including advanced manufacturing and engineering. At the West Midlands regional level, Advanced Manufacturing has suffered due to JLR’s shift in focus from volume to profit, halving production and creating more value outside the region. Creative and Cultural activities have grown significantly across the UK but remained flat in the West Midlands and Tourism (accommodation and food) has fallen significantly in the West Midlands, while remaining flat nationally.
All this data suggests that further interventions are required to realise the West Midlands’ economy’s growth potential and tackle barriers to economic growth and business growth, particularly relative to other regions.
Wage growth has been strong in Coventry, rising above the GB average for the first time in over 20 years. The Median Full Time gross weekly pay rose 10.5% to £698.80 in the city in 2023 compared with the previous year, moving it above the West Midlands (£651.60, a 6.0% rise), and Great Britain as a whole (£682.60, a 5.9% rise). Through the Job Shop, the Authority continues to work with Coventry residents and businesses alike to ensure that as many local residents as possible are accessing good quality employment opportunities.