1. Innovative 2. Reach of 3. Regulatory 4. Access to 5. Resilient business Our global offer to business: ecosystem 昀椀nancial activity environment talent and skills infrastructure London and the UK’s competitive 3 strengths supporting economic growth Executive summary This is the fourth edition of the City of London Corporation’s international competitiveness study, which uses more than 100 independent metrics to evaluate the top seven global 昀椀nancial centres (GFCs). The period studied in this report began with Russia’s invasion of Ukraine, which kick-started a new economic era of rampant in昀氀ation and the fastest cycle of interest rate hikes in history. The battle to tame in昀氀ation undertaken by governments and central banks around the world has presented challenges and opportunities alike for the 昀椀nancial and professional services (FPS) industry. The UK’s FPS industry is in a strong of 昀椀nancial activity’ dimension decreased in 2022. Investment fund position. It employs 2.4 million is o昀昀set by gains in the ‘enabling AUM fell in 2022 for the 昀椀rst time people, generates 12%, or £278bn, regulatory and legal environment’ since 2008 as bond investments of UK GDP and contributes £100bn and ‘talent and skills’ dimensions. lost signi昀椀cant value. These trends continued through 2023. to UK taxes. Financial services (FS) Bottlenecks in business activity workers generate an average of caused by Brexit and the COVID-19 New metrics have been added and £177,000 in economic output, making pandemic have been cleared – some metrics have been updated them some of the most productive regulatory e昀케ciency, immigration in this year’s study. We have workers in the UK. Foreign investors policies and workers returning to the added metrics on pension quality, see the opportunity on o昀昀er: foreign o昀케ce have all improved London’s business complexity, the gender direct investment (FDI) increased business ecosystem. gap, visa access, and o昀케ce vacancies 68% from 2021 to more than £2bn This position cannot be taken for to capture the post-pandemic as asset managers, 昀椀ntechs and granted, however. Some of the business environment. investment banks opened o昀케ces in fundamentals driving the growth London. This investment also created Our analytical model captures of 昀椀nancial services are in decline. 15,000 jobs. direction of travel as well as absolute This analysis is based on relative size, and this is the driver of some The 2024 City of London positioning and therefore shows changes in the ranking. For example, Benchmarking analysis shows that that the challenges facing London in last year’s analysis New York London is the top GFC in the world. and the UK are global trends. Higher bene昀椀ted from the COVID-19 period London’s overall competitiveness interest rates and tighter monetary bull market, which saw huge amounts 2.4m £278bn £100bn score in 2024 is the same as it was policy have reduced 昀椀nancial market of 昀椀nancial market activity and a in 2023, but the score of each of the activity everywhere. Equity trading spike in 昀椀nancial asset prices, but People employed by of UK GDP generated by of UK taxes generated by underlying dimensions has changed. activity, international bond issuance, that trend has reversed as many the UK’s FPS industry the UK’s FPS industry (12%) the UK’s FPS industry For example, a decline in the ‘reach and derivatives trading volume all
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