London’s large economic lead over EU cities may narrow
Global power and financial centres indices for 2017 show London maintains a huge lead over other EU cities
Source: Global Power Cities Index 2017, Global Financial Centres Index 22 (2017)
Outlook
Earlier this month the Bank of England warned that the Brexit contingency plans of UK firms suggest that 75,000 financial jobs could be lost without a transition deal or passporting rights.
However, London tops both the Global Power City Index (GCPI) and Global Financial Centres Index (GFCI). In the GFCI, Frankfurt is the next EU city (12th), while its economy is ranked 18th in the GCPI. Beyond London, no EU city features in the GCPI top ten for either economy or research and development (R&D), helping London maintain its lead.
The United States hosts half the R&D top ten but alongside emerging Asia has no cities in this group for environment or livability.
Impacts
- London has won battles with the EU to keep euro-clearing, but the European Banking Authority is set to leave.
- Brexit may boost London’s livability from 18th if house price fall forecasts prove correct; living costs are one of the livability drivers.
- Emerging Asia scores highly for economy but lower for livability; boosting safety, social security and affordable housing is key.
See also
- Brexit’s impact on the City of London will vary - Aug 7, 2020
- London will survive Brexit, but property will suffer - Dec 11, 2018
- ‘No deal’ Brexit could become more likely - Oct 25, 2017
- More graphic analysis