Economic growth in London is expected to be stronger than many of its European counterparts, a report has said.
Global advisory firm Oxford Economics said London GDP growth was expected to be 2.3 per cent a year until 2021, outpacing rivals across the pond.
Growth in Paris is forecast to be 1.6 per cent a year over that period, Milan 1.7 per cent and Munich 1.5 per cent.
Oxford Economies said a post-Brexit plunge in the pound had been helpful for competitiveness, though it may prove harmful as higher inflation puts a squeeze on consumer spending.
It said business confidence had also been impacted because of concerns over slower growth and reduced trading opportunities
The report comes after data last week revealed the UK economy grew 0.3 per cent in the second quarter of the year.
The Office for National Statistics said economic growth had edged up from 0.2 per cent in the first three months of the year.
Mark Britton, lead economist at Oxford Economics, said: “While we are being cautious in our forecasts [for London], we are not currently projecting a major crisis.”
Of 25 major European cities analysed by the firm, the average annual GDP growth between 2017 and 2021 is forecast to be 1.9 per cent.
Meanwhile, employment is expected to climb 0.9 per cent a year on average.
But the firm said that any forecasts were subject to “significant uncertainties” – namely Brexit in the UK and the impact of President Macron in France.
Of 25 European cities analysed, Warsaw is expected to experience the highest GDP growth at 3.5 per cent a year until 2021.
Rome was ranked last with expected annual GDP growth of 1.2 per cent.
Oxford Economics said Dublin was likely to experience the greatest employment growth, at 1.5 per cent, largely due to its flourishing information and communications sector.
