This is from October forecasts of 3.8 per cent and 2.9 per cent respectively, thanks to a sharp and sustained increase in both business and consumer confidence in the capital. These growth estimates mean that London is expected to restore its status as the fastest growing UK region after the South East held the title in 2012 and 2013.
In fact, Cebr’s forecasts for London and the UK show that London will be accounting for a third of all the growth in the UK over the next five years. This comes despite the region accounting for roughly 13 per cent of total UK employment suggesting the capital is pulling above its weight.
Cebr has also revised its forecasts for London employment growth, which is projected to rise by 2.8 per cent over 2014, and by 1.5 per cent in 2015. Employment growth of 6.1 per cent is expected between 2014 and 2019 in the region. This will be fuelled by the business services, technology and construction sectors.
Due to large amounts of construction in Central London, employment in this industry is forecast to increase by 7.3 per cent this year, the fastest sector for employment growth. Adding to this, finance and business services employment is estimated to grow by 11 per cent in the next five years in Central London, equivalent to nearly 100,000 jobs.
Behind London, the fastest growing region in 2014 is expected to be the South East, supported partly by a strengthening technology sector. Improvements in this sector will particularly affect the South East since the region has the second largest number of ICT businesses (with London having the most), which comprised of 7.5 per cent of all businesses in the region in 2013.