Business and Economy in London

London is a major engine of the global economy. As Europe’s largest city economy, it generated $365 billion in 2004 (17% of the UK’s Gross Domestic Product) although this only refers to the city proper. The economic impact of the entire London metropolitan area is far higher, year-on-year accounting for approximately 30% of the UK’s GDP or $642 billion (estimate) in 2004. If it were it a country, the London metropolitan area would be the 13th largest economy in the world - higher than the GDP of Australia. London is also a large financial exporter making it a large contributor to the UK’s balance of payments.

Further information: Economy of the United Kingdom and List of countries by GDP (nominal)

The City of London is the largest financial centre in London, home to banks, brokers, insurers and legal and accounting firms. A second financial district is developing at Canary Wharf to the east of central London. This is smaller than City of London, but has equally prestigious occupants, including the global headquarters of HSBC, Reuters, Barclays and the largest law firm in the world, Clifford Chance.

Non-financial business headquarters are located throughout central London. Some are in City of London, but more are located further west, in and around Mayfair, St. James’s, the Strand and elsewhere. More than half of the UK’s top 100 listed companies (the FTSE) are headquartered in central London, and more than 70% in London’s metropolitan area. London is a leading global centre for professional services, and media and creative industries. 31% of global currency transactions occur in London, with more US Dollars traded in London than New York, and more Euros traded there than every city in Europe combined.

Tourism is one of the UK’s largest industries, and in 2003 employed the equivalent of 350,000 full-time workers in London .

While the Port of London is now only the third-largest in the United Kingdom - rather than largest in the world, as it once was - it still handles 50 million tonnes of cargo each year. The main docks are now at Tilbury, which is outside the boundary of Greater London.