London and south east now accounts for £4 in £10 of total UK economy
London accounts for almost a quarter of the UK’s total economic activity, according to new figures from the Office of National Statistics.
The capital accounted for 22.7 per cent of total UK Gross Domestic Product in 2019, and 23.8 per cent of total Gross Value Added.
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When the south east is added, that figure rises to 37.5 per cent and 38.4 per cent.
London business leaders said the figures demonstrated the need for “concerted action” to ensure the capital continues to power the country’s economy in the aftermath of Covid-19.
And, in the ten years to 2019, London saw GDP growth of 49 per cent compared to 33 per cent across the whole of the rest of the country.
|Total GDP (£m)||Percentage of total|
|Yorkshire / Humber||146,746||6.63%|
|East of England||190,962||8.62%|
The new data suggests UK GDP grew by 1.3 per cent in 2019. London witnessed the largest growth at 2.2 per cent. Total GDP per head in London was £56,149, compared to the UK average of £32,876.
The Covid-19 pandemic, however, is expected to have hit the capital hard – with hospitality and tourism both hard-hit by lockdowns.
Laura Osborne, Interim Corporate Affairs Director of London First, said: “Central London lost more jobs than any other region, but the stats show that the capital’s economy remains vital to the economic recovery of the whole UK.
“The UK’s rapid economic recovery demands a vibrant, growing capital city. Concerted action is needed to bring people back to the capital, to put Transport for London on a sustainable financial footing and to turbo-charge reskilling. Simply leaving London to bounce back is not enough.”
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