Figure 2: London’s economic growth driven by job gains W hile London’s economic growth was associated with 1.3 million extra jobs (2007-2019), Paris’ slightly lower economic growth was characterised by a combination of lower employment gains (0.4 million) and higher productivity growth. London’s mismatch between overall growth and productivity is explained by different job creation patterns, as Figure 2 shows. GDP and productivity: Millions USD, constant prices, constant PPP, base year 2015. Figure 1: London is growing faster than Paris despite stagnant productivity In 2019, London’s economy was 25 per cent ( 1.4 per cent a year) larger than in 2007, compared to 1 9 per cent ( 0.9 per cent a year) in the French Capital. Before Covid London had a productivity problem but not an output growth oneĭespite the weak productivity growth in recent years, analysed in our latest report, London’s economic growth has been stronger than Paris ’. London, and the UK as a whole, has been particularly affected by this.Ĭomparing London and Paris, Western Europe’s two megacities, helps us understand some of the potential drivers behind London’s underperformance. After the financial crisis, developed economies experienced a sharp slowdown in productivity growth.
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