Economic Environment in the East Midlands

ECONOMIC ENVIRONMENT OF EAST MIDLANDS
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Introduction
Attention Getter: East Midlands has a vibrant and growing environmental economy that has created around 71,000 jobs and had a positive growth of 0.3% of the gross domestic product (GDP) in the fourth quarter of 2018 (Office for National Statistics, 2019).
Credibility Statement: However, in 2019, the GDP of East Midlands was negative 0.2% in the first quarter. In the same year, the GDP was about Ј130 billion, comprising 5.9% of the United Kingdom’s (UK) GDP (House of Commons Library, 2021).
Thesis Statement: Although the economic environment of the East Midlands significantly contributes to the UK’s GDP, it has been adversely affected by the fluctuating process of goods and services in that region.
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The economy of the East Midlands has slowed down.
The economic environment of the East Midlands has been favorable for an extended period before things started going in the opposite direction in 2019. In reality, it was the first time that the region had a low Economic Index, which was partially caused by the Covid-19 pandemic. According to the East Midlands director of external affairs and policy, Chris Hobson, the Economy Index of the region in 2020 was disappointing for businesses since it shows an economy that proceed to grow and expand at a gradual pace (East Midlands Chamber, 2021). Hobson said that the economic growth has been adversely affected in numerous sectors. Many enterprises are facing the reality of increasing costs of raw materials, which reduces the profit margins.
The GDP of East Midlands in 2021
The population of East Midlands is 4.8 million. In addition, the region has around 397,000 businesses. The total regional output of the East Midlands was Ј125 billion in 2018, constitution about 5.8% of the UK’s economy (East Midlands Councils, 2021). The rate of employment in the East Midlands is higher than that of the UK whose average employment rate is 75.3%. When it comes to the workforce, East Midlands is ahead of the UK. Specifically, the UK has 7.4% while East Midlands has 11.1% of its workforce in manufacturing (East Midlands Council, 2021).
The economic environment of the East Midlands
Due to the Covid-19 pandemic, the economic environment of the East Midlands had been adversely affected but it is recovering. For example, the increasing costs of staffing and raw materials are challenging for businesses in the region since they have to cope with it by increasing the prices of their finished products, which leads to a decrease in sales volumes. In particular, not many firms are increasing their workforces since the rate has felt by 8%. The rate of cash flow improvement decreased by 10% and enterprises are concerned about the price rise in the fut...