There is light to be found at the end of the dark tunnel of economic chaos and this is most especially so in London, who having been at the center of a crisis financially for the longest time is now spearheading recovery for the UK economy. For all the effects that a weaker pound produced, a rebound was made in the banking sector, house price gains and retail sales in London.
Because of this, the city is running way ahead of other places in the UK recuperating from the economic crisis. There’s even more good news in the line of the job industry with the country preparing to host the 2012 summer Olympic Games. Also, a myriad of big rail transport projects are underway which makes the possibilities of growth stronger in the future.
For financial services and construction keeping afloat during these troubled times, London has helped UK’s overall economy grow to 1.1% in the short time span of three months beginning in April. This is seen as the strongest expansion experience in any of the quarters for the past four years. It is even double the growth that economists expected.
With regard to the financial services industry, the banks are given the most credit for being at the heart of this economic boost. Their profits have recovered and became strong in the recent months and banks like HSBC reported having doubled profits and it happened all in the first half of 2010.
Today, Prime Minister David Cameron and his coalition government are talking about starting concentration on the manufacturing and exports industries. This is to help rebalance the economy. On the other hands some business leaders think that this change could have a negative effect in taxation and regulation which could damage the city of London’s financial services sector.
