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UK financial services generated a record trade surplus of $127 billion (£95 billion) in 2024 underlining the City’s crucial importance to the overall economy.
The total, a 15% rise on 2023, makes the UK the world’s biggest net exporter of financial services such as banking, foreign exchange, and insurance, ahead of the US.
The surplus is bigger than that of the next three highest ranking countries, Singapore, Switzerland and Luxembourg, combined.
When related professional services, such as legal services, are included, the combined surplus reaches $152.5 billion (£119.1billion) according to estimates from industry body TheCityUK.
Just over a third of the UK financial sector exports go to the USA, just ahead of the EU on 31%. Within that Luxembourg (4.9%), Ireland (4.9%) and France (4.3% are the top three destinations for exports in the bloc.
The figures shine a light on how the UK would struggle to pay its way without the foreign earning from exports of financial and other services.
Latest official trade figures show the UK ran a £58.9 billion deficit in goods in the three months to November. However, this was almost offset by a £52.8 billion surplus on trade in services.
Anjalika Bardalai, chief economist and director of research, TheCityUK, said:“The global economic landscape remains highly uncertain, with geopolitical tensions once again to the fore and the impact of any increased market volatility also potentially in prospect.
“Against this backdrop, UK-based financial and related professional services exports remain resilient, with their exports a particular measure of their ongoing strength.
“The UK’s substantial trade surplus in financial services and its market-leading positions in a number of financial services and related professional services sectors reinforce its position as a leading global hub for such services and the important contribution these sectors make to the domestic economy.”
London dominates the UK trade in financial and professional services through the vast clusters of the City and Docklands.
The figures show the UK is the world’s largest centre for cross-border banking, accounting for 14.6% of the total outstanding value of international bank lending. London hosts more than 160 foreign banks or branches.
