Global economic and political troubles impact London’s economy
London is very exposed to the challenges facing the global economy, and we now forecast that Inner London’s GDP will grow by only 3.8% in 2022, a sharp slowdown on the 6.6% that we calculate for 2021. That is despite the fact that the London economy has continued to expand gradually in recent months, with a cautious return to the office helping city-centre shops, bars and restaurants, a recovery of the culture and entertainment sector, and some revival of the visitor economy. In the medium term (2022-26) we forecast that Inner London’s GDP growth will average 2.7% a year.
What you will learn:
- London accounts for 5.4% of the UK population. Commuting and high productivity mean that its GDP share is almost triple that of its population.
- London has a large finance sector but an even larger business services sector. Together, they account for over half of London’s GDP.
- London outperforms the European city average on most structural measures. Its workforce is younger, more highly educated, and more productive.
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