Brighton’s economy is set to be among the fastest growing in terms of job creation at the point when the UK emerges from its recession in the second half of 2023, according to a new study.

The Irwin Mitchell City Tracker has been produced by the Centre for Economics and Business Research (Cebr) and examines 50 locations across the UK, forecasting future growth in terms of GVA, the value of goods and services produced in an area, industry or sector of an economy, and employment.

The report from the law firm, which estimates that the UK entered into a recession in the second half of 2022, expects economic growth to resume in the second half of 2023.

According to the research, Brighton’s economy is expected to grow by 1.1 per cent year-on-year in the fourth quarter of 2023, with GVA rising to £9.2bn.

The report says Brighton’s large retail sector is likely to struggle as many consumers cut back spending amidst rising bills and mortgage costs.

However, it says the city also has a thriving knowledge-intensive business services sector which is set to be less affected by the recession.

Josie Dent, managing economist at Cebr, said: “2023 will be a difficult year for consumers and businesses on the South Coast, with the cost-of-living crisis expected to lead to falling economic activity.

“However, Cebr forecasts that economic growth will resume in the second half of 2023, with most cities expected to see an annual expansion in GVA by Q4 2023.”

Charlotte Rees-John, partner and head of Irwin Mitchell’s consumer sector, said: “Last year presented numerous challenges and the downward pressure on spending activity, which continues to be concentrated in the consumer sector, looks set to continue throughout the first half of 2023.

“The consumer sector has however been one of the most resilient, agile and innovative sectors in recent times and those businesses that succeed during 2023 will be in a very strong position to take advantage of a more stable economic environment in 2024.

“Considering longer-term aspirations, such as the transition to carbon net zero, is something all businesses, irrespective of the sector they are in and the pressures that they are facing, need to do.”