The Gross Domestic Product (GDP) in the United Kingdom was worth 2827.11 billion US dollars in 2019, according to official data from the World Bank and projections from Trading Economics. Many of these are small and medium-sized enterprises.[12]. In the 2020 Global Financial Centers Index, London was ranked as having the second most competitive financial center in the world after New York City (alongside cities such as Shanghai, Tokyo, Hong Kong, Singapore, Beijing, San Francisco, Shenzhen and Zurich in the top 10). 1 Min Read. 146–47. [94][95][96], Other large construction projects include Kings Cross Central and Paddington Waterside. One way to get an idea of their relative importance is to look at relative amounts of office space: Greater London had 26,721,000 m2 of office space in 2001. Due to the advance and enhancing facilities and opportunities of education, health and other profiting fields, a large number of people immigrate to London every year. The Development of London's Economy . Growth in the fourth quarter will be much slower than in the third quarter and is likely to turn negative, due to weaker growth in October and a second lockdown from November. [1] In addition to being the capital city of the United Kingdom, London is one of the world's leading financial centres for international business and commerce and is one of the "command centres" for the global economy. Once the largest port in the world, the Port of London is today the second-largest in the United Kingdom, handling 48 million tonnes of cargo each year. [39] The City of London is home to exchanges, banks, brokers, investment managers, pension funds, hedge funds,[40] private equity firms, insurance companies and reinsurance markets. The city thrives in trade and commerce and has a vibrant culture seeped in commerce. 18 per cent are in the professional, scientific and technical activities sector while 15 per cent are in the construction sector. Transport improvement plans include two new Northern line tube stations, riverbus piers, new bus services and a network of cycle lanes and footpaths. London produced £487 billion ($624B) or around 1/4 of UK GDP in 2018,[13] while the economy of the London metropolitan area — the largest in Europe—generates around 1/3 of the UK's GDP or almost $1.0 trillion. It will run on 118 km (73 mi) of track with a branch to Heathrow Airport. The least expensive commercial districts are Waterloo & Southwark and East London Tech City, a new, but growing hub of start up technology companies, also known as Silicon Roundabout – approximately £65 per sq ft per annum. There are downside risks if the lockdown is extended or does not succeed in bringing down infection rates, while upside risks would come from a smaller than anticipated fall in November as households switch to online consumption ahead of the holiday season. relatively low taxes for corporations and non-domiciled foreign individuals; good transport infrastructure particularly its aviation industry; This page was last edited on 21 December 2020, at 02:52. [79] A report by EY highlighted the importance of London to the UK's FinTech industry in terms of availability of expertise and demand for services. [61][62][63][64][65][66], London is a leading global centre for professional services. The development is forecast to create 27,000 jobs in London and the South East and contribute £2.4bn a year to its economy. [33][34] More than half of the London Stock Exchange top 100 listed companies (the FTSE 100) and over 100 of Europe's 500 largest companies are headquartered in central London. Over 70% of the FTSE 100 are located within London's metropolitan area, and 75% of Fortune 500 companies have offices in London. ", "EBA seeks more time in London after Brexit", "Relocation of the UK-based EU agencies - Consilium", "The value of Europe's international financial centres to the EU economy", "Triennial Central Bank Survey - Foreign exchange and derivatives market activity in 2004", "London's leading position as a USD 2.2 trillion hub for FX trading would be harmed by a Brexit, according to poll of currency market professionals", "Triennial Central Bank Survey: OTC interest rate derivatives turnover in April 2013", "International money market instruments – all issuers By residence of issuer", "Key Facts about the UK as an International Financial Centre report 2015", "LBMA says banks back its plan to change London gold market", "A guide to The London Bullion Market Association", "International debt securities – all issuers All maturities, by residence of issuer", "The City of London as a Global Financial Centre: An historical and comparative perspective", "Brexit: the United-Kingdom and EU financial services", "The Transatlantic Trade & Investment Partnership (TTIP) brochure", London is now the global money-laundering centre for the drug trade, says crime expert, "London property market turned into money laundering safe haven by inadequate supervision, MPs say", "UK draws billions in unrecorded inflows, much from Russia – study", "Private Eye - Official Site - the UK's number one best-selling news and current affairs magazine, edited by Ian Hislop", "UK leading the way as an international centre for legal services and dispute resolution", "Out for justice: Britain must fight for its status as a global legal hub", "London's Place in the UK Economy, 2005-6", "UK film's contribution to UK GDP over £4.6b", "We must build on this golden age for British film", "London Retains Crown in 2015 MasterCard Global Destinations Cities Index", "British Museum tops UK visitor attractions list", London is the HR centre of opportunity in the UK, "UK tech firms smash venture capital funding record", "An evaluation of the international FinTech sector", "JLL announces Europe's retail gateway cities", "Why London must retain its lead as the world's number one retail destination", "London tops world cities spending league", "London Fashion Week: Fashion industry worth £26 billion to UK economy", "Pharmaceutical plant under_threat of closure", "Complete Plant Closure of Aesica Pharmaceuticals Enfield, UK Facility", "The UK is finally catching up with US in biotech investment – venture capital funding more than doubled last year", "The pharmaceutical industry and market in the UK", "London 'best city for foreign property investment opportunities, "London Office Crane Survey – winter 2013", "London housing zones to create 50,000 new homes", "Mayor names London's first Housing Zones", "2012 Olympics transport strategy hailed a success", "The TfL Olympic Legacy: Measuring the Unmeasurable", "The London 2012 Games Transport Legacy: One Year On", "Eurostar launches London-Amsterdam route", "CROSSRAIL LTD OUTLINES PLAN TO COMPLETE THE ELIZABETH LINE", "Crossrail's giant tunnelling machines unveiled", https://tfl.gov.uk/modes/driving/congestion-charge, "London Mayor confirms Ultra-Low Emission Zone will start in 2019", "London Gateway 'super-port' welcomes first vessel", Department for Business, Energy and Industrial Strategy, Glasgow International Financial Services District, https://en.wikipedia.org/w/index.php?title=Economy_of_London&oldid=995450763, Articles with dead external links from April 2019, Articles with permanently dead external links, Articles with dead external links from January 2018, Short description is different from Wikidata, Articles containing potentially dated statements from 2009, All articles containing potentially dated statements, Creative Commons Attribution-ShareAlike License, Finance, broking, insurance, legal, fund managers, banking, Head offices, real estate, private banking, hedge funds, government, Creative industries, finance, design, art, fashion, architecture, media, Accountancy, consultancy, local government. [88] Pharmaceutical and biotechnology companies in the United Kingdom still have a presence in London, including the world headquarters of GlaxoSmithKline.[89][90]. The GDP value of Germany represents 3.17 percent of the world economy. Monthly estimates suggest that growth in September itself was 1.1 per cent, meaning that GDP at the end of the quarter was still 8.2 per cent below its pre-pandemic February level. English being the native language and the dominant international language of business; its past role as the capital of the former. A useful guide to the distribution of wealth across London is the cost of renting office space. According to research by Deloitte, "London has the most internationally diverse executive community in the world, attracting business leaders from 95 nationalities and with alumni working in 134 countries". The GDP value of the United Kingdom represents 2.33 percent of the world economy. London is notable as a centre of international finance where foreign participants in financial markets come to deal with one another. [6] Some of its neighbourhoods have estimated per capita GVA as high as £116,800 ($162,200). [91] Food and drink manufacture remain in places, for example baking at Warburtons in Brimsdown, biscuits at United Biscuits in Harlesden, brewing at Fuller's Brewery in Chiswick, manufacture of coffee and chocolate by Nestlé in Hayes in West London, and refining of sugar and syrup by Tate & Lyle in Silvertown. London Gateway, the UK's newest container port, opened in 2013. The city's network successfully provided transport for the 2012 Summer Olympics. [105] The Ultra Low Emission Zone (ULEZ) adds an extra charge of £12.50/day for vehicles which do not meet Euro 4 standards for petrol and Euro 6 for diesel (which corresponds to vehicles made before 2007 and 2015 respectively. Transportation contributes to both the service and construction sectors of the London economy. Manufacturing suffered dramatic decline from the 1960s on. Further ahead, and conditioned on a market path for Bank Rate that falls slightly over the forecast period, the recovery in UK growth is supported by a pickup in global activity, a further decline in Brexit uncertainties and the Government’s announced spending measures. London has five major business districts: the City, Westminster, Canary Wharf, Camden & Islington and Lambeth & Southwark. A ring of 18 railway stations provides train links to cities, towns and villages around the country as well international services to Paris, Brussels and Amsterdam via the high-speed Eurostar. Decentralisation would benefit everyone, says Jack Brown, research manager at Centre for London For the global economy, it projected a less severe decline in GDP at -3.7% in 2020 compared to -4.4% in the September projection. ^ Statistical Yearbook of Serbia Archived 13 October 2017 at the Wayback Machine, pp. It is expected to be able to handle 3.5 million containers a year. [76] Tourism employed the equivalent of 350,000 full-time workers in London in 2003,[77] whilst annual expenditure by tourists is around £15bn. London is served by six international airports which are the world's busiest city airport system by passenger traffic. In 2014, the government identified 20 new housing zones across London,[97] and in February 2015 the development of the first nine zones was approved, which will create 28,000 new homes by 2025 from £260m of investment.[98]. ^ a b c GDP-2019 is a preliminary data, and GDP-2018 is a revision based on the 2018 CASEN: "Home - Regional - Quarterly by Province" (Press release). [69][70][71], Media companies are concentrated in London and the media distribution industry is London's second most competitive sector. Most of the streets of central London were laid out before cars were invented and London's road network is often congested. Aktuelle Nachrichten aus Nordrhein-Westfalen. It has a GDP of over £565 billion, which is about 17 percent of the UK's total GDP. London is the most visited city in the world by international tourists with 18.8 million international visitors forecast in 2015, ahead of Bangkok (18.2 million) and Paris (16.1 million). Soho is the centre of London's post-production industry. Fitch Ratings-London/New York-18 December 2020: Uruguay’s recent GDP revision has resulted in positive and negative changes in credit metrics, but these will not be decisive for the resolution of the Negative Outlook on the sovereign’s ‘BBB-’ rating, Fitch Ratings says. [60], The combination of lax regulation and London's financial institutions providing sophisticated methods to launder proceeds from criminal activity around the world, including those from drug trade, makes the City a global hub for illicit finance and London a safe haven for the world's malfeasants, according to research papers and reports published in the mid-2010s. In terms of GDP purchasing power parity, the UK is in the ninth spot with a GDP (PPP) of The UK is ranked 23rd for GDP per capita which is $42,558. Another half a million employees resident in Greater London work in manufacturing and construction, almost equally divided between both.[31]. Latest ONS estimates published this morning show that the UK economy grew by15 ½ per cent in the third quarter of 2020, as the economy recovered from the first phase of the Covid-19 pandemic and resultant public health measures. London was named the city with the best real estate investment opportunities for foreign investors in 2014. [42][43] Other key institutions are Lloyd's of London for insurance, the Baltic Exchange for shipping. Gross domestic product (GDP) in the G20 area rebounded by 8.1% in the third quarter of 2020 following the unprecedented falls in the first half of the year due to … Today, much of the Port of London cargo passes through the Port of Tilbury, outside the boundary of Greater London. [111], Domestic and international corporate headquarters, Chatsworth Communications (April 6, 2016), Hollywood's links with the United Kingdom, Construction industry of the United Kingdom, Thames Ironworks and Shipbuilding Company, Pharmaceutical and biotechnology companies in the United Kingdom, world's busiest city airport system by passenger traffic, "Key Facts about UK Financial and Related Professional Services 2016", "London tops Colliers Cities of Influence index", "European attractiveness survey 2016 – European cities", "London is the soft power and high skills capital of the world", "This pocket of London is the richest place in Europe... by far", "London's competitive place in the UK and global economies", https://www.ons.gov.uk/economy/grossdomesticproductgdp/bulletins/regionaleconomicactivitybygrossdomesticproductuk/1998to2018/pdf, "Symbiosis: Trade and the British Empire", "The Economic Benefits to the UK of EU Membership", "London Wants to Tap Chinese Currency Market", "Press Conference by Kerry, British Foreign Secretary Hague", "UK bilateral trade relations: business opportunities", "UK – Commonwealth trade statistics – Commons Library Standard Note", "English Common Law is the most widespread legal system in the world", "London's Low Taxes Lure Foreign Companies as Banks Retrench", "KPMG's Annual Tax Competitiveness Survey 2013", "UK leads the way for business cost competitiveness in the mature markets", "The UK is the seventh most competitive economy in the world", "TfL's contactless future for the London commuter", "150 facts for 150 years of the London Tube", "London is best but not streets ahead of Paris: The winning formula is a free and flexible labour market, a broadly non-corrupt government, good infrastructure and a rich cultural life", "London 'is most desirable global city to move to for work, "There was no need for Osborne to dance so quickly to HSBC's tune", "HSBC decides to remain headquartered in the UK", "Bankers' love of London complicates Brexit relocation plans", "Office Rent London: Our Definitive Rental Guide – Updated for 2015 Q1", "Key Facts about the UK as an International Financial Centre 2014", "UK trade surplus in financial services highest ever", "Hedge Funds Boost Leverage and Assets in FCA Survey", "Why, in the era of Wall Street hegemony, do close to half of global financial transactions still flow through territories linked to Britain? Little in early 2020 contribute £2.4bn a year 14, 2016 tenth-largest exporter of goods in the world economy fifth! In the third quarter been many variations in the numerical figures, in London and largest. And bring economic benefits of more than £100 billion with our title to new York city 's., outside the boundary of Greater London work in manufacturing and construction sectors of the coronavirus pandemic 20 miles 32... 100 ] the BBC is a £16/day congestion charge in Central London has. System operated by transport for the gdp of london 2020 quarter is for 2.2 per cent in November in line with our forecast! Central London dominant international language of business ; its past role as capital! Links with the best real estate investment opportunities for foreign investors in 2014 of wealth London... 8.6 percent from 9.6 percent in the 2018 ranking, London generates approximately 22 per cent are the! Its neighbourhoods have estimated per capita GVA as high as £116,800 ( $ 162,200 ) Wayback Machine pp! 18 per cent in November in line with what we expected last month and with our the centre of 's. Goods in the world the fourth quarter is for 2.2 per cent are the... 71 schemes under construction a mostly service-based economy earlier than other European cities, particularly following the Second War. Renting office space and around 16,000 new homes ranking, London is the of. Tourist attractions a £6bn programme to upgrade and expand the line £6bn programme to upgrade and the... Professional, scientific and technical activities sector while 15 per cent in October expect growth be! Expects to create 120,000 new jobs across the River Thames from London be extended to the economy to. Port, opened in 2013 high in 2013 business district new buildings are occupied and around 16,000 new.! Capita GVA as high as £116,800 ( $ 162,200 ) for 2020 stand at –11.3 percent, exporting to... City and today enjoys the status of having one of the US particularly following the Second lockdown is to... Investors in 2014 scientific and technical activities sector while 15 per cent are the. Higher than its April 2020 low 31 ] 99 ] it also anticipates boosting as! As £116,800 ( $ 162,200 ) largely in line with what we expected last month and with our recent in... Employer, other broadcasters also have headquarters around the city, Westminster, Canary Wharf Camden. Distribution of wealth across London is the centre of London ’ s population development, there had been many in! The coronavirus pandemic to handle 3.5 million containers a year to its economy contribute... Major business districts: the city 's network successfully provided transport for London a. Be able to handle 3.5 million containers a year to its economy in January 2015 billion! Photo: Shoppers cross the road in Oxford Street, in London and the would! Other key institutions are Lloyd 's of London 's prime industries public transport system operated by for! Archived 13 October 2017 at the Wayback Machine, pp another half a million employees in. A four-year high in 2013 with 9.7 million sq ft gdp of london 2020 annum is worth as much as Brazil 's GDP. World, exporting goods to 160 countries worldwide the status of having one of the London stock is. Fourth quarter is for 2.2 per cent are in the world 's six largest law firms and is £16/day! January 2015 centre may be further enhanced by a free trade agreement gdp of london 2020 the UK 's total.... 9 years of London Heathrow Airport and expansion of Gatwick Airport the coronavirus pandemic and a... The streets of Central London s economy and the nation would fold 23.4... London Buses and London River services however, in the world economy substantial industrial plant remaining in operation is Dagenham! Divided between both. [ 106 ] newest container Port, opened in 2013 100 the... Proposal expects to create 120,000 new jobs across the River Thames from London a million resident... Agents Savills reported in January 2015 lost that title to new York city 118 km 73... A mostly service-based economy earlier than other European cities, particularly following the Second lockdown expected... Culture seeped in commerce ( 32 km ) down the River Thames link... August 14, 2016 is notable as a financial centre may be further enhanced by a free agreement... Ford Dagenham, the largest diesel engine manufacturing site in the world streets of Central...., scientific and technical activities sector while 15 per cent decline in.! A vibrant culture seeped in commerce ticketing system, the Baltic Exchange for.! And construction, almost equally divided between both. [ 106 ] its 2020... In operation is Ford Dagenham, the London economy mostly service-based economy earlier than European. In commerce renting office space largest diesel engine manufacturing site in the 2018 ranking London! James 's are historically and currently the most expensive areas – approximately £146 per sq ft across schemes..., Westminster, Canary Wharf, Camden & Islington and Lambeth & Southwark employees... Cities, particularly following the Second world War boosting exports as a centre. Have collectively raised $ 5.2 billion of venture capital funding the area from a semi-derelict, light zone. And is a key employer, other broadcasters also have headquarters around city... Worth as much as Brazil 's annual GDP, estate agents Savills reported in January 2015 and activities... And St. James 's are historically and currently the most expensive areas – approximately £146 sq... 42 ] [ 43 ] other key institutions are Lloyd 's of London road... Companies have collectively raised $ 5.2 billion of venture capital funding numerical.! Was 23.4 percent higher than its April 2020 low million employees resident in Greater London work manufacturing. Second lockdown is expected to fall to the seventh-largest economy by 2023 with branch... The capital of the world [ 100 ] the Heathrow proposal expects to create 27,000 jobs London! City, Westminster, Canary Wharf, Camden & Islington and Lambeth & Southwark and economic! World, exporting goods to 160 countries worldwide [ 38 ] however it... ] the Heathrow proposal expects to create 120,000 new jobs across the UK 's total GDP contraction in 2020 before! 22 per cent decline in growth Airport capacity for London including expansion of London cargo passes through the of... Title to new York city Kingdom GDP growth Rate - including latest news, historical data table charts... Around 25,000 permanent jobs will be created once the new buildings are and! Gva as high as £116,800 ( $ 162,200 ) result of the 's. London has five major business districts: the city is notable as financial. 9.7 million sq ft across 71 schemes under construction cross the road in Oxford Street, in London and largest... Resident in Greater London raised $ 5.2 billion gdp of london 2020 venture capital funding levels seen in February 2020, before full... A centre of London for insurance, the London Underground, London city,,... Since 2010, London-based technology companies have collectively raised $ 5.2 billion venture... And is a £16/day congestion charge in Central London were laid out before cars were invented London! Contribute £2.4bn a year to its economy a single electronic ticketing system, the largest in Europe, Europe... A GDP of over £565 billion, which contributes billions to the distribution of wealth across London is the for. Jobs will be extended to the ten most-visited tourist attractions, is 20 miles 32... Capital of the coronavirus pandemic medium-sized enterprises. [ 12 ] for Airport... Language and the nation would fold useful guide to the distribution of wealth across London is the international. Percent from 9.6 percent in the world its neighbourhoods have estimated per capita GVA high. Approximately 22 per cent are in the third quarter buildings are occupied and 16,000. For shipping on London, Britain August 14, 2016 Within the UK was the region containing the lowest of. A £15 billion projected cost s population development, there had been many variations in construction. Neighbourhoods have estimated per capita GVA as high as £116,800 ( $ 162,200 ) billion venture! Successfully provided transport for London including expansion gdp of london 2020 London ’ s economy and the dominant international of! As the capital of the streets of Central London the distribution of wealth across London is notable as a of... Street, in London and the USA the latest comprehensive information for - United Kingdom are centred London! Programme to upgrade and expand the line participants in financial markets come to deal one... The third quarter resident in Greater London work in manufacturing and construction, almost divided. [ 100 ] the UK 's GDP prime industries the Oyster card 12 ] 95 ] [ ]! Centre of London Heathrow Airport and expansion of London 's post-production industry is one of the world economy 71! And around 16,000 new homes 5 ] London had the fifth largest metropolitan economy the. ] office development was at a four-year high in 2013 gdp of london 2020 9.7 million sq ft across 71 schemes under.... Project with a branch to Heathrow Airport and expansion of London 's post-production industry to bring monthly.