EG LONDON FORUMLONDON


London is the world’s leading financial centre. But is it in danger of losing the crown to competing locations such as New York or Hong Kong? Reporting by Mark Simmons


King (financial) castle of the


Charles Davis, head of macroeconomics at the London-based Centre for Economics and Business Research does not mince his words: “London has really taken a hit from the LIBOR scandal. But it is also under pressure from many different angles.” These include an increasingly regulated financial environment, the UK’s potential exit from EU membership, the legacy of the global financial crisis and a significant decline in City-type jobs. That is not all, though, says Davis, who


92 www.estatesgazette.com


has previously worked as a government economist and now acts as an economic adviser for major private


companies. He points to the shift in growth from the West to East and the increasing dominance of


locations such as Singapore and Hong Kong: “Global macroeconomic


trends aren’t going in London’s favour, so there is a threat over the next five to 10 years that it could be overtaken by emerging centres.”


Davis is no doom-monger, however. Although competition from other


13 April 2013


locations is significant, he believes that it is quite possible for the UK capital to hold its own. He says: “London is very dynamic, it is a real dynamo and, crucially, it is evolving.” Job losses in the financial sector are,


he says, being balanced by growth in the city’s media, information and creative industries. While London’s short to medium-term


growth forecasts are at least positive (see right), and slightly better than those of the UK as a whole, Davis says that politicians need to recognise the value of financial services to the capital: “The government will have to do all it can to protect the industry.”


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25