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London is capital of UK economic output


London accounts for nearly one fifth of the UK’s economic output, new figures have shown.

At 22.4 per cent, its share of the economy was far and away the biggest, with only the south-east –at 14.6 per cent – coming anywhere close.

The capital boasted also one of the highest regional growth rates in 2012, with its two per cent bettered only by the south-east’s 3.3 per cent and the 2.2 per cent clocked up in the north-west.

The figures, from the Office for National Statistics (ONS) measure “gross value added” (GVA), in effect gross domestic product but minus the effects of both taxes and subsidies.
Total GVA in 2012 was £1,383 billion, of which London accounted for £309 billion and the south-east £203 billion.

The north-west accounted for 9.4 per cent of output (£131 billion), East Anglia 8.4 per cent (£116 billion), the south-west 7.3 per cent (£102 billion), the West Midlands 7.1 per cent (£98 billion), Yorkshire and Humberside 6.7 per cent (£93 billion), the East Midlands 5.8 per cent (£80 billion) and the north-east three per cent (£42 billion).

England in total accounted for 84.8 per cent of GVA, or £1,173 billion.

Scotland accounted for 7.7 per cent (£106 billion), Wales for 3.4 per cent (£47 billion) and Northern Ireland for 2.1 per cent (£29 billion).

In terms of growth rates, England overall grew by 1.8 per cent during 2012, Wales by 1.9 per cent, Northern Ireland by 1.2 per cent and Scotland by 0.4 per cent.

Elsewhere within England, the north-east grew by 1.7 per cent, East Anglia by 1.6 per cent, the West Midlands by 1.3 per cent, the south-west by 1.2 per cent, Yorkshire-Humberside by one per cent and the East Midlands did not grow at all.

In terms of GVA per head of population, London had the highest, at £37,232, while Wales had the lowest, at £15,401.

The ONS figures also contain data for an intriguing ‘virtual region’ dubbed Extra-Regio. This contains all the economic activity – such as that taking place on oil rigs or payments made to members of the forces stationed abroad – that cannot be easily assigned to a specific area. In 2012, Extra-Regio’s GVA was £24 billion, putting its share of output – 1.7 per cent – last in the table.