Economy of London facts for kids
The economy of London is dominated by service industries, particularly financial services and associated professional services, which have strong links with the economy in other parts of the United Kingdom and internationally. According to Brookings Institution,
Economy of London facts for kids
The economy of London is dominated by service industries, particularly financial services and associated professional services, which have strong links with the economy in other parts of the United Kingdom and internationally. According to Brookings Institution, London has the fifth largest metropolitan economy in the world. Some neighborhoods have estimated per capita GVA as high as £116,800 ($162,200). By way of comparison, London's economy is roughly the same size as that of Sweden or Iran.
With an estimated 8,615,246 residents in 2015, London is the most populous region, urban zone and metropolitan area in the United Kingdom. London generates approximately 22 per cent of the UK's GDP. 841,000 private sector businesses were based in London at the start of 2013, more than in any other region or country in the UK. 18 per cent are in the professional, scientific and technical activities sector while 15 per cent are in the construction sector. Many of these are small and medium-sized enterprises.
Manufacturing and construction
- See also: Manufacturing in the United Kingdom and Construction industry of the United Kingdom
For the 19th and much of the 20th centuries London was a major manufacturing centre (see Manufacturing in London), with over 1.5 million industrial workers in 1960. Manufacturing suffered dramatic decline from the 1960s on. Entire industries have been lost including shipbuilding (which ended in 1912 after hundreds of years with the closure of the Thames Ironworks and Shipbuilding Company), consumer electronics, aircraft manufacture and most of the vehicle construction industry. This trend continues, with the loss of the pharmaceutical manufacturing sites of Aesica (formerly Merck Sharp and Dohme) at Ponders End in 2011, and Sanofi-Aventis (originally May & Baker) at Dagenham by 2013. Pharmaceutical and biotechnology companies in the United Kingdom still have a presence in London, including the world headquarters of GlaxoSmithKline.
A substantial industrial plant remaining in operation is Ford Dagenham, the largest diesel engine manufacturing site in the world. 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, and refining of sugar and syrup by Tate & Lyle in Silvertown. At 2.8%, London was the region containing the lowest proportion of employees engaged in UK manufacturing.
London was named the city with the best real estate investment opportunities for foreign investors in 2014. Office development was at a four-year high in 2013 with 9.7 million sq ft across 71 schemes under construction.
A multibillion-pound 10-year construction programme has begun in Nine Elms on the South Bank of the river Thames in central London. This will develop the area from a semi-derelict, light industrial zone into a modern residential and business district. The programme includes regeneration of Battersea Power Station, construction of new embassies for the United States and the Netherlands, and regeneration of New Covent Garden Market which is the largest fresh produce market in the U.K.. Transport improvement plans include two new Northern line tube stations, riverbus piers, new bus services and a network of cycle lanes and footpaths. A new bridge across the river Thames will link Nine Elms to Pimlico on the opposite bank. Around 25,000 permanent jobs will be created once the new buildings are occupied and around 16,000 new homes.
Other large construction projects include Kings Cross Central and Paddington Waterside. In 2014, the government identified 20 new housing zones across London, 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.
- See also: Transport in the United Kingdom
Transportation contributes to both the service and construction sectors of the London economy.
London has an integrated public transport system operated by Transport for London under a single electronic ticketing system, the Oyster card. The city’s network successfully provided transport for the 2012 Summer Olympics. It includes the London Underground, London Overground, Docklands Light Railway, London Buses and London River Services. A ring of 18 railway stations provides train links to cities, towns and villages around the country as well Paris and Brussels via the high-speed Eurostar. The Thameslink rail network is undergoing a £6bn programme to upgrade and expand the line.
Crossrail, due to open in 2018, will be a new railway line running east to west through London and into the surrounding countryside. It will run on 118 km (73 mi) of track with a branch to Heathrow Airport. The main feature of the project is construction of 42 km (26 mi) of new tunnels connecting stations in central London including a branch to Canary Wharf in east London. It is Europe's biggest construction project with a £15 billion projected cost. An additional line, Crossrail 2, has been proposed.
There are a number of proposals for expanding airport capacity for London including expansion of London Heathrow Airport and expansion of Gatwick Airport. The princi