The City of London now rivals entire countries in economic output, despite having just 13,462 residents.

 The City of London has smashed through the £100 billion GDP barrier for the first time, cementing its place as one of the world’s most powerful economic hubs. New figures from the Office for National Statistics (ONS) show the Square Mile generated a staggering £110.8 billion in 2023 — an 11.5% increase on the previous year.

The achievement pushes the City’s economic clout into the same bracket as entire countries such as Morocco and Slovakia. With just over 13,000 residents — fewer than the Scilly Isles — the area’s output dwarfs all other local authorities across the UK. Its extraordinary density of wealth creation has few parallels anywhere in the world.

At the core of this financial force are the City’s dominant industries: banking, insurance, legal services, tech, and consultancy. Despite its small geographic footprint, the Square Mile continues to attract vast amounts of domestic and international capital, fuelling London’s overall economic might.

Trailing just behind was neighbouring Westminster, home to much of the West End and Whitehall, which posted a GDP of £97.1 billion. Tower Hamlets — which includes Canary Wharf — followed in third with £46.2 billion, showcasing the extraordinary gap between the top two and the rest of the country.

Camden, covering areas such as Covent Garden and Holborn, took fourth place with £41.6 billion. The highest-ranking area outside of London was Leeds, with a GDP of £39.3 billion. Birmingham and Manchester closely followed with £38.9 billion and £38.04 billion respectively.

The figures further confirm London’s commanding position as the UK’s economic engine. The capital as a whole saw its GDP climb from £572 billion in 2022 to £617 billion in 2023 — an 8% nominal rise. That’s roughly equivalent to the size of Poland’s economy, placing London just outside the global top 20.

If current growth trends continue, the capital is poised to become a $1 trillion economy within a few years — a milestone that would see it rival the world’s largest financial centres.

Across the wider UK, the south east posted the second highest output at £391 billion, followed by the north west with £270 billion, and the east of England at £229 billion. Yet the disparities between London and the rest of the country remain stark.

While the nominal numbers are eye-catching, the real picture is more sobering. Adjusted for inflation, London’s output actually fell 0.5% in 2023. The economic fallout from Russia’s full-scale invasion of Ukraine — which triggered soaring energy prices and a wider cost of living crisis — has dampened real growth across much of the UK.

Still, London’s GDP per head stood at an unmatched £69,077 — far ahead of the rest of the nation and a reflection of its status as a global magnet for high-value work and investment.

Despite broader national stagnation, the Square Mile’s surge offers a glimmer of hope to UK policymakers grappling with sluggish productivity and regional inequality. However, it also reinforces concerns over the country’s heavy dependence on the capital for growth.

As the City of London continues to punch far above its weight, its evolution will be closely watched — not just by economists and business leaders, but by regions hoping to replicate even a fraction of its astonishing success.