2.8.1 The South West is a relatively productive and wealthy region particularly compared with the English regions outside the Greater South East. The northern part of the region is the main engine for economic growth with urban centres exhibiting high levels of productivity, supported by high-level skills, innovation and enterprise. By contrast, some areas - predominantly the more rural and peripheral parts of the region - perform considerably less well than other parts of the country.
2.8.2 Generally, the region benefits from a well-qualified workforce, high rates of business stock (as a proportion of the resident working age population) and performs relatively well on measures of innovation and investment in certain sub-regions. Increasing the level of engagement with international trade remains a key challenge for the region.
2.8.3 The SW region has a ‘productivity gap’, whereby it lags the most productive areas in England (the Greater South East). The region has some deficiencies in areas of basic and higher level skills. In addition, it suffers from lengthy time-distances to major markets and exports only a relatively small proportion of its economic output overseas. Each of these factors have a negative impact on the region's relative and absolute performance.
2.8.4 Data suggests that overall the region exhibited a relative degree of resilience through the recession, though some parts were hit harder than others. A number of factors will dampen the recovery in the region (as nationally) and it will be some time before rates of economic growth, as experienced before the downturn, materialise.
