Economy
London generates approximately 20 per cent of the UK's GDP (or $446 billion in 2005); while the economy of the London metropolitan area—the largest in Europe—generates approximately 30 per cent of the UK's GDP (or an estimated $669 billion in 2005). London is one of the pre-eminent financial centres of the world and vies with New York City as the most important location for international finance.
London's largest industry is finance, and its financial exports make it a large contributor to the UK's balance of payments. Around 325,000 people were employed in financial services in London until mid-2007. London has over 480 overseas banks, more than any other city in the world. Over 85% (3.2 million) of the employed population of greater London works in the services industries. Because of its prominent global role, London's economy has been affected by the Late-2000s financial crisis. The City of London estimates that 70,000 jobs in finance will be cut within a year. The City of London is home to the Bank of England, London Stock Exchange, and Lloyd's of London insurance market.
Over half of the UK's top 100 listed companies (the FTSE 100) and over 100 of Europe's 500 largest companies have their headquarters in central London. Over 70 per cent of the FTSE 100 are located within London's metropolitan area, and 75 per cent of Fortune 500 companies have offices in London.
Along with professional services, media companies are concentrated in London and the media distribution industry is London's second most competitive sector. The BBC is a significant employer, while other broadcasters also have headquarters around the City. Many national newspapers are edited in London. London is a major retail centre and in 2010 had the highest non-food retail sales of any city in the world, with a total spend of around £64.2 billion. The Port of London is the second-largest in the United Kingdom, handling 45 million tonnes of cargo each year.
London has five major business districts: the City, Westminster, Canary Wharf, Camden & Islington and Lambeth & Southwark. One way to get an idea of their relative importance is to look at relative amounts of office space: Greater London had 27 million m2 of office space in 2001, and the City contains the most space, with 8 million m2 of office space. London has some of the highest real estate prices in the world.
Read more about this topic: The Weather In London
Famous quotes containing the word economy:
“War. Fighting. Men ... every man in the whole realm is in the army.... Every man in uniform ... An economy entirely geared to war ... but there is not much war ... hardly any fighting ... yet every man a soldier from birth till death ... Men ... all men for fighting ... but no war, no wars to fight ... what is it, what does it mean?””
—Doris Lessing (b. 1919)
“Cities need old buildings so badly it is probably impossible for vigorous streets and districts to grow without them.... for really new ideas of any kind—no matter how ultimately profitable or otherwise successful some of them might prove to be—there is no leeway for such chancy trial, error and experimentation in the high-overhead economy of new construction. Old ideas can sometimes use new buildings. New ideas must use old buildings.”
—Jane Jacobs (b. 1916)
“Quidquid luce fuit tenebris agit: but also the other way around. What we experience in dreams, so long as we experience it frequently, is in the end just as much a part of the total economy of our soul as anything we “really” experience: because of it we are richer or poorer, are sensitive to one need more or less, and are eventually guided a little by our dream-habits in broad daylight and even in the most cheerful moments occupying our waking spirit.”
—Friedrich Nietzsche (1844–1900)