London`s economy is wobbling from the early effects of Brexit judging from the capital`s faltering housing market, fewer European Union citizens seeking work and weaker job creation, according to a report from the Centre for London think tank.
Despite the unemployment rate holding at its lowest in more than 25 years at 5.5 percent, job creation has slowed and the number of foreign workers seeking payroll tax registrations has dropped by 15 percent compared with a year earlier.
"While no-one knows how Brexit will play out, this new analysis suggests that London`s economy is beginning to wobble," think tank director Ben Rogers said on Tuesday.
Britain`s economy performed much better last year than most economists expected in the months after the vote to leave the European Union. But since the start of this year, there have been signs of slowing consumer spending and increased reluctance among businesses to invest.
Demand for luxury housing in central London has fallen sharply, and the Centre for London said that the overall annual rate of house price growth was less than 3 percent, the weakest since 2012 when the city was still recovering from the 2012 financial crisis.
"London has shown remarkable resilience in the years following the recession. But its growth has not been painless. Levels of inequality have soared. Congestion, pollution and the housing shortage have all worsened," Rogers said.
The report was sponsored by Australian property and construction company Lendlease
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Mutual Fund SIP: Invest Rs 1000 per month to grow your corpus to over Rs 3.5 core at retirement, know calculations
Top 7 Stocks to Track: This defence PSU multibagger can give 45% return; food delivery app stock likely to rise 19%
Top 7 SWP Mutual Funds: Rs 50 lakh investment, Rs 70K monthly pension for 10 years, and Rs 42.30 lakh balance value; know more details
Gold and Silver rate today (May 13, 2024): Precious metal under pressure; yellow metal near Rs 72,400, white metal above Rs 84,600
04:39 AM IST