The City’s economy worth ten times UK average

The City of London continues to be the economic powerhouse of the UK and is stretching its lead as the nation’s strongest economy, according to top 15 firm UHY Hacker Young.

Despite expectations that the City’s economy would shrink following the banking crisis, it has in fact grown at double the speed of the national average.

Since 2008 the City’s growth rate has been 24% in Gross Value Added (GVA), compared with the national average of 12%. GVA is a measure of an area’s contribution to the nation’s economy based on the value of the goods and services it produces per capita. The City’s GVA per head is £292,855, while the national average is £25,601, making the City’s economy worth ten times the UK average. The City has the highest GVA in the country and the other regions in the top 5 are all in central London.

Further to its core financial services, the City has transformed itself into a hub of ecommerce and fintech services, according to UHY Hacker Young.

Colin Jones, partner at UHY Hacker Young, commented: “Despite the predictions of some would-be Cassandras, the City has actually increased its importance to the UK economy in the wake of the banking crisis.”

“When the crisis was at its height, many predicted a decline in the importance of the City’s economy, but instead it has proven to be resilient and still easily outpaces other major UK cities. Indeed, its growth is still primarily driven by its huge wholesale financial services industry.”

“Along with its traditional strengths in investment banks and professional services firms, the City is now also host to more fintech and non-traditional financial services industries. Over the past decade, London has become a key global hub for fintech companies.”

“The City, along with the rest of central London, continues to generate huge amounts of wealth for the national economy. Not only has the City stayed dominant, but the wider economy of London as a whole continues to go from strength to strength.”

“On the eve of the start of Brexit negotiations the City, ironically, looks healthier than ever. However, it remains to be seen whether Brexit will prove to be the City’s next existential crisis as firms debate whether to relocate offices to other European cities such as Frankfurt and Paris.”

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