London monitor | London to grow by 6.7%, as signs of recovery emerge

Our Oxford Economics Normality Tracker shows that London’s return to “normality” may have slowed recently. But we nevertheless forecast that GVA in London will rise by 6.7% this year, underpinned by strong growth in consumer spending as lockdown restrictions fall away.

What you will learn:

• We forecast that the fastest growth rates in 2021 will be found in Inner London boroughs (Hackney, Southwark, Newham). Overall, however, Outer London will grow faster in 2021 than Inner.
• The labour market situation remains challenging. Resident employment fell by -32,100 between September-November 2020 and December 2020-February 2021.
• House prices in London declined by -1.4% in February, the sharpest monthly drop in almost ten years.