London’s economic activity dipped 3.6% from 2019 to 2021, compared to a slightly smaller 3% average decline for all UK regions, according to EY’s latest Regional Economic Forecast. But, between 2021 and 2025, London is forecast to grow by 3.1% per year compared to annual average growth of 2.8% across the UK.

Only the East Midlands and South West are currently expected to gain any ground on London over the next three years compared to their pre-pandemic performance – although the capital is on course to pull ahead again after 2025.

London’s forecasted dominance is even more apparent in the labour market, with the capital one of just four UK regions (out of 12) expected to see their working age population grow – by 4.7% – between 2021 and 2025. The North East, by contrast, is expected to see its working age population shrink by 2% over the same period.

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