A new economic report has placed Edinburgh in the top 10 best performing cities for economic output and employment by the end of 2023.
However, the Centre for Economic and Business Research (CEBR) and Irwin Mitchell's UK Powerhouse report predicted more mixed fortunes for Aberdeen and Glasgow.
Edinburgh should rise from being among the bottom five cities in the UK for economic output in the fourth quarter last year, to eighth place by the same period next year - with a 2.2% year-on-year increase in gross value added (GVA).
This equates to £900m of growth and takes the total size of the economy to £23.2bn.
It predicted a more modest increase in employment will see Edinburgh move from 13th place in the fourth quarter of 2021 to ninth in the fourth quarter of 2023 - a 2% year-on-year growth set to deliver 14,000 new jobs.
The report found that Aberdeen was the best performing Scottish city in the fourth quarter of 2021, but is predicted to be at the bottom place for economic output - with year-on-year employment of just 1.2% by quarter four of 2023.
The report found that the reversal of fortune for the Granite City reflects a pattern outlined in the report for slower growth in those cities with declining industries, something borne out by Aberdeen’s oil-driven economy, which is set to grow just 1.3% by the end of 2023.
Glasgow was the more consistent Scottish city in the league table, moving up 12 places to 21 for economic output by the end of the fourth quarter in 2023.
the report predicts a modest improvement in employment, seeing the city move up one place to 17 by this time, creating 12,300 new jobs.
Scotland is placed fifth for the number of Foreign Direct Investment (FDI) projects, but also has the fifth biggest reduction in the number of FDI projects when compared to England.
Edinburgh is one of only two cities to buck the trend, and in addition to Scotland’s placing 5th for the number of FDI projects, the country is also among those seeing the biggest reduction in the number of FDI projects when compared to Southern rivals.
Bryan Bletso, partner and head of international at Irwin Mitchell, said: “On the face of it, the transformation of fortunes between Aberdeen and Edinburgh is eye-catching, but should come as no surprise.
“Edinburgh is another city with a large financial services sector which is predicted to do well, versus those cities with economies centred on manufacturing or declining industries.
“Part of this is bound up with the importance of attracting FDI to improve the long term economic outlook and the report highlights the fact that how well this can be done will show how far the levelling up agenda can become a reality.”
Josie Dent, managing economist at CEBR, said: “The economy is still expected to face some turbulence between now and the end of next year, notably through volatility in commodity prices, supply chain pressures, and the emerging cost-of-living crisis domestically.
“All of these factors are set to impact growth both at the aggregate level and, to a varying extent, within individual cities.”
Don't miss the latest headlines with our twice-daily newsletter - sign up here for free.
