Productivity in the City soars ahead of rivals

Tim Wallace
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THE CITY is the most productive area in the EU, outstripping the rest of the UK by an even greater margin than previously thought, official figures showed yesterday.

Output in inner London west – the areas including the City and the financial district around Mayfair and Westminster – is more than 50 per cent higher per hour worked than in the UK as a whole.

Previous figures for inner London as a whole had shown productivity was 44 per cent higher. But by focusing in on the financial districts, the additional value added by the City specifically is made even more clear.

Although relative productivity in the City has fallen slightly since the financial crisis, it is still firmly up over the decade – in 2002, gross value added per hour worked in inner London west was 50.7 per cent above the UK average.

The latest figures from the EU showed inner London’s productivity was far and away the highest in 2010.

On a scale where 100 equalled the EU average GDP per capita, inner London’s came in at 328 per cent.

Given the City falls in the most productive part even of that region, the figures suggest the financial districts are soaring even further ahead than previously thought.

On the EU’s figures, Luxembourg came next with 266 per cent of the EU’s average GDP per capita.

Brussels was third at 223 per cent, with Hamburg fourth at 203 per cent and Ile de France, the region including Paris, at 180 per cent – under 55 per cent of London’s level.