Currency | Pound Sterling (£) |
---|---|
Country group | Scotland Economy of Scotland |
Statistics | |
Population | 523,000 (2022) [1] |
GDP | £31.8 billion (2022) [2] |
GDP per capita | £60,764 (2022) [3] |
GDP by sector | Financial services, banking, insurance, national government, local government, public sector, gaming, software development, hospitality, tourism |
Labour force | 312,100 / 82.1% in employment (Jan 2023-Dec 2023) [lower-alpha 1] [4] |
Labour force by occupation | List
|
Unemployment | 10,900 / 3.5% (Jan 2023-Dec 20234) [lower-alpha 3] [6] |
Average gross salary | £720.70 per week (2023) [lower-alpha 4] [7] |
Edinburgh, the capital city of Scotland, was ranked the 13th largest financial centre internationally and the 4th largest financial centre in Europe in 2020. [8] The economy of Edinburgh is recognised as a powerhouse of the Scottish economy, as well as the wider UK economy, being the second largest financial centre in the United Kingdom behind London. [9]
Edinburgh has been consistently one of the most prosperous parts of the country and has the strongest economy of any city in the UK outside London. [10] Financial Times FDi Magazine has named Edinburgh as the "Best Large European City of the Future" and "Best Foreign Direct Investment Strategy (Large City)" for 2012/13. [11]
The city is consistently ranked as one of Scotland's major industrial hubs, with an employment workforce of around 48,030 across the city. [12]
Banking has been a mainstay of the Edinburgh economy for over 300 years, since the Bank of Scotland was established by an act of the Scottish Parliament in 1695. Today, the financial services industry, with its particularly strong insurance and investment sectors, and underpinned by Edinburgh-based firms such as Scottish Widows and Standard Life Aberdeen, accounts for the city being the UK's second financial centre after London and Europe's fourth in terms of equity assets. [13]
The NatWest Group (formerly Royal Bank of Scotland Group) opened new global headquarters at Gogarburn in the west of the city in October 2005. In the 19th century, Edinburgh's economy was known for banking and insurance, publishing and printing, and brewing and distilling. Today, its economy is based mainly on financial services, scientific research, higher education, and tourism. [14]
The table below shows the top employers in terms of employee numbers in the City of Edinburgh:
Employer | Number of employees | ||||||
---|---|---|---|---|---|---|---|
NHS Lothian | 19,890 | ||||||
City of Edinburgh Council | 18,617 | ||||||
University of Edinburgh | 13,372 | ||||||
NatWest Group | 8,368 | ||||||
Lloyds Banking Group | 7,500 | ||||||
Standard Life | 5,259 | ||||||
The Scottish Government | 3,913 | ||||||
Lothian and Borders Police | 2,439 | ||||||
Tesco (inc Tesco Bank) | 2,400 | ||||||
Royal Mail | 2,257 | ||||||
[18] | Source: Edinburgh by Numbers 2013/14 |
This next table highlights the number of people in employment in the City of Edinburgh by industrial sector:
Sector | Number of employees | ||||||
---|---|---|---|---|---|---|---|
Human health and social work | 45,300 | ||||||
Wholesale, retail and repair | 36,400 | ||||||
Financial Services | 34,600 | ||||||
Education | 29,200 | ||||||
Accommodation and food services | 26,800 | ||||||
Professional, scientific and technical activities | 27,100 | ||||||
Administrative and support services activities | 21,000 | ||||||
Public administration, defence and social security | 18,700 | ||||||
Information and communication | 12,400 | ||||||
Transportation and storage | 10,200 | ||||||
Arts, entertainment and recreation | 10,000 | ||||||
Construction | 9,000 | ||||||
Manufacturing | 7,300 | ||||||
Other service activities | 5,500 | ||||||
Primary industries and utilities | 3,200 | ||||||
Real estate | 5,200 | ||||||
[18] | Source: Edinburgh by Numbers 2013/14 |
Edinburgh is the second largest financial centre in the United Kingdom, after the City of London, and the fourth in Europe by equity assets. [20]
Edinburgh has been a centre of banking for over 300 years; the Bank of Scotland was founded in 1695, by an act of the original Parliament of Scotland and is now part of Lloyds Banking Group, who have retained the Scottish headquarters in Edinburgh. The Royal Bank of Scotland (RBS) was founded in 1727 by royal charter. In 2000, RBS acquired National Westminster Bank in the biggest banking takeover in British history. It is now part of the NatWest Group, who have also retained the Edinburgh headquarters, operating from a complex at Gogarburn since 2005. TSB, Tesco Bank, [21] Sainsbury's Bank, and Virgin Money [22] also have headquarters in the city.
In insurance terms, indigenous Edinburgh companies such as Standard Life and Scottish Widows form a large part of the European insurance sector as well as being major employers in the city. Scottish Widows was founded in 1815, managing £145.79 billion worth of funds at June 2013 [23] with a workforce of around 3,500.
The New Town and city centre has traditionally been home to many companies, in the banking, finance and legal professions, but modern needs have caused many to relocate. Immediately to the west of the city centre is the Terry Farrell master-planned Exchange business district, which now houses major employers such as Scottish Widows, Standard Life, the Clydesdale Bank, and Baillie Gifford.
Edinburgh Park is one of the largest business parks in the UK [24] and is located on the western periphery of city, near Edinburgh Airport. The park was opened in 1992 alongside the large out-of-town shopping development at South Gyle and is close to major routes such as the A8, the M8 motorway and the A720 Edinburgh City Bypass and now has its own railway station. Close to Edinburgh Park at Gogarburn, the Royal Bank of Scotland have opened their global headquarters. HSBC, Royal Bank, Diageo, J. P. Morgan, Telewest, BT, Fujitsu and Lloyds Banking Group have all established large offices in this park. Following the opening of the Royal Bank's new headquarters, there will be around 20,000 people working in the western outskirts of the city.
Edinburgh has an estimated 17,136 [25] people working within digital companies. The technology sector has grown upon the expertise within the city’s universities. The city has seen a growth in the number of software companies in the city over the last 10 years and there are now[ when? ] more than 100. [26] These include travel search website Skyscanner and one day fantasy sports provider FanDuel who have grow within the city. Rockstar North (formerly DMA Design), known for creating the Grand Theft Auto series, is also based in Edinburgh. [27] Several large corporates have invested in Edinburgh including Amazon Development Centre Scotland and Microsoft. The School of Informatics is the UK’s largest and longest established research group in informatics. In the REF 2014 assessment for computer science and informatics the School of Informatics has produced more "world-leading" and "internationally excellent" research (4* and 3-star) than any other university in the UK. [28]
A large number of technology companies are based in the area around the University of Edinburgh.
Edinburgh has not had as large or as significant a retail sector compared to Glasgow, however large out-of-town shopping developments have taken place in recent years,[ when? ] such as the Gyle development in 1993 and the Fort Kinnaird shopping complex located to the east of the city. The St. James Centre and Princes Mall started in the 1970s, then Cameron Toll in the 1980s. More recent developments are the Gyle centre next to Edinburgh Park, Ocean Terminal in Leith and the retail parks at Hermiston Gait, Straiton and Fort Kinnaird which are all next to the Edinburgh City Bypass. Edinburgh has many modern supermarkets in its suburbs which offer a more day-to-day type of shopping. As a shopping centre, particularly Princes Street, Edinburgh suffered some decline for a number of years, but since 2005 has seen the City centre yield rise in comparison to other similarly sized cities. [29] Recent attempts to encourage shoppers back into the city centre have included the development of top brand department stores on George Street and St Andrew Square and plans to redevelop Princes Street in the future. [30] In October 2016, the St. James Centre was demolished and rebuilt with a new £1 billion design by Allan Murray Architects and BDP Architects, and was opened to the public in June 2021. It was renamed the St James Quarter and is able to accommodate up to 80 new brands. While it brought a new excitement to the city with many new brands appearing within the quarter, it caused many brands located in Princes Street to relocate to the St James Quarter, undermining the hopes to revitalise the street. St James Quarter was designed to be in the shape of an eye, with the 5-star W Hotels taking pride of place in the 'iris'. This central feature, however, caused a lot of controversy in the city and even put Edinburgh's UNESCO World Heritage status under threat.
Tourism is another important mainstay of the economy of Edinburgh, supporting 30,000 jobs in the city worth £1.6 billion to the city economy. [31] In 2011, visitor spending was £1.16 billion, compared to £250 million in 1990. [32] Edinburgh is Scotland's most popular tourist destination in terms of visitor numbers, with numbers growing substantially each year, particularly in the budget travel and backpacking sector, assisted by the growth of Edinburgh Airport and direct rail links to the rest of the country. The annual Edinburgh Festival attracts record numbers, as does the Hogmanay street party each New Year, with over 4.3 million visitors attending Edinburgh's various festival events over 2012. [33] The Edinburgh Festivals in August alone generate in excess of £100 million for the Edinburgh economy. Another component of Edinburgh's tourist industry is business and conference tourism, which generates in excess of £74m for the city. [34] Edinburgh is the UK's most popular conference destination, ahead of both London and Glasgow. [31] Visitors are attracted by the UNESCO World Heritage Sites of the Old Town and the New Town as well as the history and culture of the city most visible in tourist attractions such as Edinburgh Castle and the Palace of Holyroodhouse.
Tourist attraction | Number of visitors | ||||||
---|---|---|---|---|---|---|---|
National Museum of Scotland | 1,893,500 | ||||||
Edinburgh Castle | 1,230,200 | ||||||
Scottish National Gallery | 961,300 | ||||||
St Giles' Cathedral | 904,400 | ||||||
Edinburgh Zoo | 810,900 | ||||||
Royal Botanic Garden Edinburgh | 704,600 | ||||||
Edinburgh Bus Tours | 511,400 | ||||||
National War Museum | 492,700 | ||||||
Scottish Parliament Visitor Centre | 345,100 | ||||||
Our Dynamic Earth | 331,800 | ||||||
Scottish National Portrait Gallery | 328,000 | ||||||
Scottish National Gallery of Modern Art | 314,800 | ||||||
Royal Yacht Britannia | 300,700 | ||||||
Scottish Whisky Heritage Centre | 270,600 | ||||||
Museum of Childhood | 237,500 | ||||||
Source: Moffat Centre Visitor Attraction Monitor 2012 |
Edinburgh is the centre of Scotland's government and legal system. As a consequence many government departments and public sector agencies are headquartered in the city as well as the High Court of Justiciary and the centres of Scotland's legal establishment. As a centre of Scots law, the legal profession has had a long presence in Edinburgh, with many premises in the New Town belonging to legal practices and firms. Many ancillary economic undertakings and political pressure groups have thus set up around this new seat of government leading to a boom in the recruitment and employment of public sector officials. The City of Edinburgh Council and the National Health Service are the two largest employers in the city.
Edinburgh is a major centre of education in the United Kingdom, and has been since the establishment of the University of Edinburgh in 1583, with another three major higher education institutions in the city developing later. Education and academic research (including medical research) plays a significant role in the economy of the city. The presence of these educational institutions also attracts many overseas students (27,005) and those from the rest of the UK (15,270). For the 2021–22 academic year, there is a student population of 74,710 enrolled across the four universities in the city. [35]
Institution | Number of students | International Students | Rest of the UK Students | ||||
---|---|---|---|---|---|---|---|
University of Edinburgh | 41,250 | 18,050 | 11,900 | ||||
Edinburgh Napier University | 15,530 | 3,635 | 1,005 | ||||
Heriot-Watt University | 11,680 | 4,135 | 1,615 | ||||
6,250 | 1,185 | 750 | |||||
[35] | Source: Higher Education Statistics Agency 2021/22 |
Life sciences and microelectronics in particular and have grown in prominence in recent years.[ when? ] The University of Edinburgh is a leader in the fields of medicine and law, and was a pioneer in British artificial intelligence teaching. Heriot-Watt University specialises in science and engineering and Napier University in the fields of computing and business, as well as creative fields.
The city is also home to a number of independent schools, with around one in five school-age pupils attending private institutions. [36]
The city is linked internationally by Edinburgh Airport (EDI) which in 2018 saw 14.3 million passengers throughout the year, [37] which makes Edinburgh Airport the busiest Scottish Airport and sixth busiest in the UK.
In terms of rail connections, Edinburgh Waverley railway station is the principal mainline station in the city serving over 22.5 million passenger journeys over 2011–12. [38]
The city is also well served by its bus service, with Lothian Buses having its headquarters in Edinburgh. Over 70 services run throughout the city, which includes a direct link to the airport and open top buses for city tours. [39]
The first phase of the Edinburgh Trams was completed in May 2014, consisting of 16 tram stops along the single 14 km (8.7 mi) line. The route linked Edinburgh Airport in the West, to York Place in the East. [40] The second phase of the Edinburgh Tram development was competed in June 2023 and added a further 8 stops from Picardy Place, which replaced the former York Place stop, to Newhaven in Leith, extending the line to 18.5 km (11.5 mi). There are plans to build new lines to Granton, the Royal Infirmary of Edinburgh, and Musselburgh but nothing is certain at the moment.
Derelict land and areas on the waterfront of Edinburgh at places like Granton and Leith are in the process of being regenerated to make way for mixed commercial, residential and industrial developments to further provide for the forecast growth of the city.
In an economic sense Edinburgh is constrained by its relatively small size, [41] and that there are economic benefits to be had with greater collaboration with surrounding areas such as Glasgow. [42] Edinburgh itself is ringed by greenbelt land, which has seen developments such as the offices at Edinburgh Park and housing and commercial developments to the south of Edinburgh spring up on it.
Edinburgh is the capital city of Scotland and one of its 32 council areas. The city is located in southeast Scotland and is bounded to the north by the Firth of Forth estuary and to the south by the Pentland Hills. Edinburgh had a population of 506,520 in mid-2020, making it the second-most populous city in Scotland and the seventh-most populous in the United Kingdom. The wider metropolitan area has a population of 912,490.
The economy of the United Kingdom is a highly developed social market economy. It is the sixth-largest national economy in the world measured by nominal gross domestic product (GDP), ninth-largest by purchasing power parity (PPP), and twenty-first by nominal GDP per capita, constituting 3.1% of nominal world GDP. The United Kingdom constitutes 2.3% of world GDP by purchasing power parity (PPP).
The economy of England is the largest economy of the four countries of the United Kingdom. England's economy is one of the largest and most dynamic in the world, with an average GDP per capita of £37,852 in 2022.
Edinburgh Trams is a tramway in Edinburgh, Scotland, operated by Edinburgh Trams Ltd. It is an 18.5-kilometre (11.5 mi) line between Newhaven and Edinburgh Airport, with 23 stops.
The economic geography of the United Kingdom reflects its high position in the current economic league tables, as well as reflecting its long history as a trading nation and as an imperial power. This in turn was built on exploitation of natural resources such as coal and iron ore.
The economy of Birmingham is an important manufacturing and engineering centre, employing over 100,000 people in the industry and contributing billions of pounds to the national economy. During 2013, the West Midlands region as a whole created UK exports in goods worth £19.6 billion, around 8.73% of the national total.
Edinburgh Park is an out-of-town business park in South Gyle, Edinburgh, Scotland. It is west of the city, near Edinburgh Airport and adjacent to the Edinburgh City Bypass. It was opened in 1995. The layout of the park was masterplanned by American architect Richard Meier. The park has a bar/grill, nursery, and several sculptures, including busts of famous Scottish poets, many of them socialists.
The economy of Wales is part of the wider economy of the United Kingdom, and encompasses the production and consumption of goods, services and the supply of money in Wales.
The economy of Scotland is an open mixed economy, mainly services based, which is the second largest economy amongst the countries of the United Kingdom. It had an estimated nominal gross domestic product (GDP) of £218.0 billion in 2023, including oil and gas extraction in the country's continental shelf region. Since the Acts of Union 1707, Scotland's economy has been closely aligned with the economy of the rest of the United Kingdom (UK), and England has historically been its main trading partner. Scotland conducts the majority of its trade within the UK: in 2017, Scotland's exports totalled £81.4 billion, of which £48.9 billion (60%) was within the UK, £14.9 billion with the European Union (EU), and £17.6 billion with other parts of the world. Scotland’s imports meanwhile totalled £94.4 billion including intra-UK trade leaving Scotland with a trade deficit of £10.4 billion in 2017.
Edinburgh is a major transport hub in east central Scotland and is at the centre of a multi-modal transport network with road, rail and air communications connecting the city with the rest of Scotland and internationally.
Kolkata is the prime business, commercial and financial hub of eastern India and the main hub of communication for the North East Indian states. Kolkata is the third largest city by GDP in India after Mumbai and Delhi, with a GDP of $160 billion (PPP). Kolkata is home to India's oldest, stock exchange company (bourse) – The Calcutta Stock Exchange. Kolkata is home to many industrial units operated by large public- and private-sector corporations; major sectors include steel, heavy engineering, mining, minerals, cement, pharmaceuticals, food processing, agriculture, electronics, textiles, and jute.
The economy of Leeds is the most diverse economy of all the UK's main employment centres and has seen the fastest rate of private-sector jobs growth of any UK city and has the highest ratio of public to private sector jobs of all the UK's Core Cities. Leeds has the third-largest jobs total by local authority area with 480,000 in employment and self-employment at the beginning of 2015.
The demography of London is analysed by the Office for National Statistics and data is produced for each of the Greater London wards, the City of London and the 32 London boroughs, the Inner London and Outer London statistical sub-regions, each of the Parliamentary constituencies in London, and for all of Greater London as a whole. Additionally, data is produced for the Greater London Urban Area. Statistical information is produced about the size and geographical breakdown of the population, the number of people entering and leaving country and the number of people in each demographic subgroup. The total population of London as of 2021 is 8,799,800.
The International Financial Services District (IFSD) is a financial district in the city of Glasgow, the largest city in Scotland. Nicknamed "Wall Street on the Clyde", it ranked in the top 40 of international financial districts, ahead of cities including Brussels, Madrid, Helsinki, Milan and Dublin.
The economy of London is dominated by service industries, particularly financial services and associated professional services, which have strong links with the economy in other parts of the United Kingdom (UK) and internationally. In addition to being the capital city of the United Kingdom, London is one of the world's leading financial centres for international business and commerce and is one of the "command centres" for the global economy.
The economy of Manchester is among the largest in England. Manchester is a city and metropolitan borough of Greater Manchester. It lies within the United Kingdom's second-most populous urban area, with a population of 2.55 million. Manchester's commercial centre is in Manchester city centre, focused on Spinningfields, Mosley Street, Deansgate, King Street and Piccadilly Gardens.
Croydon, located in Greater London, England, has a diverse economy with the service and retail sectors now dominating over the town's historical market status.
As the capital city of Wales, Cardiff is the main engine of growth in the Welsh economy; the city has been developing as a significant service centre and economic driver for the wider south east Wales economy. The city and the adjoining Vale of Glamorgan contribute a disproportionately high share of economic output in Wales. The Cardiff travel to work area has grown significantly since 1991; the 2001-based version includes much of the central South Wales Valleys in addition to the Vale of Glamorgan.
The economy of Liverpool encompasses a wide range of economic activity that occurs within and surrounding the city of Liverpool, England.
The following outline is provided as an overview of and topical guide to Edinburgh:
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