Glasgow is the largest city in Scotland and one of the most populous cities in the UK. The city has the largest economy in Scotland. It’s not only a major economic city but also an important social center of Scotland. About 11% of Scotland's population resides in Glasgow and the city accounts for nearly 20% of the economic growth of Scotland in the last decade.
The city generates more than 13 billion pounds per year as Gross Value Added (GVA), and the average income is rising every year.
The city of Glasgow is very dynamic. It has reinvented itself time and again to adapt to changing economic situations. The city authorities are investing a large amount of money in developing and growing the city's business base and employment opportunities.
New industries are popping up all over the city. The goal of authorities in Glasgow is to encourage entrepreneurship and business skills to give companies an edge that will help them survive in the tough economic climate at an international level.
Glasgow has a mixed economy which has become known for its excellent performance. The public and private sectors share a very good relationship in the city which has contributed immensely to the economic growth. Traditionally, engineering and manufacturing were important sectors; however, today the dominant sector in the economy is the services industry which includes health services, business and financial services, retail and public administration.
Another sector of the Glasgow economy which is doing very well is the development sector which includes residential, office and commercial, industrial and retail development. This sector has attracted a large amount of investment in recent years. Other important sectors that contribute significantly to the Glasgow economy are tourism, shipbuilding, energy, retail, life sciences and the cultural industry.
Glasgow has one of the best performing shipbuilding sectors in the world. It is the main center of the UK for shipbuilding and repairs. It accounts for nearly 25-30% of the total annual turnover of this sector. Some of the best shipping companies in the world have their bases in Glasgow.
The life sciences sector of Glasgow is relatively young but is growing at a rapid pace. An increasing number of pharmaceutical and bioscience companies are making Glasgow their home every year.
About 12,000 companies have their bases in Glasgow and they employ more than 400,000 people. The annual growth rate of Glasgow is 4.4% which is second only to London. Private sector investment reached 4.2 billion pounds in the year 2006.
Glasgow boasts of world class infrastructure facilities. Also, it is very well connected to other major cities of the world. Moreover, there is no lack of skilled people in the city thanks to the many universities in the region. The rent for business spaces is significantly lower than many other cities in the UK.
The city of Glasgow has shown very strong economic growth in the past few years and has emerged as one of the places in the world for business. Economic development of Glasgow is very important for the economic growth of Scotland.