Financial sector could lift GDP 3% if allowed to flourish – report

As many as 265,000 more jobs could be created by the financial services sector by 2020, a study claims today.

GDP could also rise 2 to 3 per cent, according to the accountancy giant PricewaterhouseCoopers (PwC), although only if regulators allow the sector to flourish.

As well as 218,000 jobs in the wider economy, 47,000 more jobs in the sector itself could be created by 2020 if economic conditions are beneficial and there is a regulatory regime that is “robust … [and] facilitates financial services sector growth”, economists from PwC said.

London would see nearly 133,000 jobs created.

if a weaker economy combines with a less supportive regulatory regime, only 12,000 jobs could be created and the GDP boost could be a mere 0.2 per cent.