02 March 2016

Greater London Authority: London - the global powerhouse

This report provides a detailed analysis of London’s competitive position, outlining where London does well, future challenges and opportunities.

Although London is always thought of as an international city, the scale of the increase in its international population over the last two decades provides just one of many indicators of how much more international it has become. The overseas born population has risen from 15% (or 1.1 million) in 1971, to 22% (1.45 million) in 1991 and to 38% (3.19 million) now. [...]

The other dramatic change over recent decades has been London’s rise as a global services city. The rise of the City (London’s banking and financial district) and of the business, professional and financial services sector has been a powerful driver of London’s growth. Its world class tourist and creative sectors have helped too.

The future points to continued globalisation and increasing urbanisation. London, like the UK, needs to position itself to succeed in the changing and growing global economy.

• While London is not immune to near term economic uncertainty this should not cloud London’s need to position itself for future global growth.

• Cities are subject to economic cycles and this basic point must not be overlooked, particularly given the high level of house prices and what might happen to interest rates, eventually.

• The global mix of growth is changing, with Europe accounting for less, and emerging growth markets for more. London needs to position itself in those markets, as well as the US, while remaining Europe’s financial centre. London must be a place not only to do business “in” but to do business “from”. [...]

• Another global focus is on the quality of growth and need to enhance productivity. London needs to attract investment, enhancing productivity and ensuring high quality jobs are retained and created.

Full report

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