As the largest city in the United Kingdom and the most populous metropolis in Europe, London is a vibrant city marked by constant change and innovation. These characteristics affect everything in the city, from its economic life to its demographics.
According to the 2012 census, there are 8.2 million people living in London. In just over ten years, the capital’s population grew by 12 per cent, which is the highest growth rate that the city has experienced since the turn of the century.
The city’s population has always been characterised by its ethnic diversity. Ten years ago, 25 per cent of the capital’s population had been born abroad. This figure has been slowly increasing since, and in 2012 the number of foreign-born London residents reached the 3 million mark, which constitutes nearly 37 per cent of the city’s total population.
In terms of ethnicity and country of origin, London has always had large groups of Asian-born residents, mostly from India, Pakistan, and Bangladesh. However, this trend is also changing, as now the largest groups of foreign residents in London include citizens from Poland, Ireland, France, and South America. Undoubtedly, the economic crisis that has swept through Europe has had an effect on the demographics of the British capital.
The population of London is younger than the national average, as 63 per cent of residents are 44 years old or under. This also means that the city has an ageing population, since the fastest-growing population group is that of people over 65.
The Economy
Because of its location by the River Thames, the economy of London has traditionally been highly dependent on trade. Although the importance of the city’s docks and wharfs declined over time, the revitalisation of the Docklands and Canary Wharf areas at the end of the 1980s transformed the city’s economy. Nowadays, London is among world’s the top five economies, and according to research carried out by Citigroup, the growing trend shows no signs to stop. By 2025, the city’s GDP will exceed £515 billion, putting London’s economy well ahead of other global centres such as Tokyo or New York.
The city’s key economic players are split into five business districts: the City, Canary Wharf, Westminster, Camden, Islington, Lambeth, and Southwark. Each of these districts has a distinctive economic base.
The diversification of the economy has also made it stronger and better equipped to face the recession. Although the financial sector was affected by the economic crisis, unemployment levels in London remain low, especially following the 2012 Olympic Games, which helped create thousands of jobs, mostly in the fields of tourism and construction.
Recent industry trends in London
Finance is by far the most important industry in the British capital, as more than 100 of Europe’s leading 500 financial institutions are based in the city. However, other industries have been developing over the past few years and gaining importance. This is the case of creative industries, which now employ over 400,000 Londoners. Creative industries are growing at a rate much higher than other traditionally important London industries, such as banking, media, business services, and tourism.
Another important trend to note is the growth of high-tech industries, such as biotechnology, IT, and telecommunications. These are mostly concentrated in the East London area known as Tech City, which in 2012 saw the launch of over 15,000 new high-tech start-ups.