The UK’s 2-Tier Economy – London (And Everyone Else)

Courtesy of Zerohedge:

London’s economy may be decoupling from the rest of the U.K. at an accelerating pace. As Bloomberg’s Niraj Shah explains, the capital’s contribution to U.K. output, house prices and financial jobs are all at a record high while the suicide rate is at a series low… while the rest of the nation is ‘not’.

London Contribution to U.K. GDP at Record High

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London’s GDP is larger than that of 12 of the 18 euro-area nations. London’s share of U.K. output measured by gross value added rose to a historic high of 21.9 percent in 2011, the latest available data from the ONS show. Scotland accounts for 8.2 percent of U.K. output. One in 28 Londoners is a millionaire, according to wealth analysts Wealth Insight.

Financial Sector’s Growing Dominance

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The number of financial services jobs in London rose above the pre-crisis level last year to 688,000, according to lobby group TheCityUK. City jobs are forecast to rise by 2.7 percent this year to 707,500. The financial sector accounted for 21.1 percent of London’s output in 2010. Sixty percent of inner London workers are graduates, compared with 29 percent in northeast England, the ONS says Continue reading