The largest in Europe, London metropolitan area generates about 30% of UK’s GDP. The five major business districts in London are Lambeth & Southwark, the City, Canary Wharf, Westminster and Camden. In 2001, office space of London was 27 million meter square but the City still contains 8 million meter square of office space. Some of the highest real estate prices in the world and the world’s most expensive office markets are in London. According to the European Office of Statistics and the Office for National Statistics, the City has the highest property prices of any European city.
The finance industry of London is based in Canary Wharf and the City of London which are two Central Business Districts in London. The most important location for international finance is London, making it the most pre-eminent financial centres of the world. Shortly after 1795, when the Dutch Republic collapsed before the Napoleonic armies, London took over as a major financial centre.
A strong Jewish community from all over Europe was capable of mastering the most sophisticated financial tools and it strengthened the London financial elite. The transition from Commercial Revolution to Industrial Revolution was accelerated by the talents of this unique concentration. London became a leading financial centre, and Britain was the wealthiest of all nations by the end of the 19th century. As of 2016, London tops the world rankings on both the Global Cities Index and the Global Financial Centres Index.
Finance is London’s largest industry and is a large contributor to UK’s balance of payments due to its financial exports. Until mid 2007 arrived, financial services employed around 325,000 people in London. The overseas banks of London are over 480 in number, which means that it has more banks than any other city in the world. London is also known as the world’s biggest currency trading centre.
The financial crises remained from 2007 to 2008 which affected London’s economy but the city recovered when 2010 arrived. They re-established London’s economic dominance and proceeded to regain lost ground. The City of London is home to the Bank of England, Lloyd’s of London insurance market and London Stock Exchange, along with professional services headquarters.
Over 100 of Europe’s 500 largest companies and over half of UK’s top listed companies have their headquarters in London. Fortune 500 has 75 per cent of the offices and over 70 per cent of the FTSE are within London and its metropolitan area.
You can see the economy of London is pretty strong and probably the strongest in the world. Of course, every city/country goes through economical crises but London has managed its economy line very gently and that’s why it’s called the City of dreams.