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London’s economy loses its lustre

The city has been hit by successive shocks and diminishing growth. But the rest of the UK needs it

When Gabriel Gonzalez opened the doors of Lima, a restaurant offering on-trend Peruvian dining, in 2012, London was basking in the limelight of the Olympics. 

“They were boom years . . . London was almost the centre of the world,” he says, describing a well-travelled, multinational clientele with a taste for niche cuisines. On a typical Friday, the restaurants clustered around Lima in the backstreets of Fitzrovia — a West End area popular with creative and professional services firms — would be “heaving . . . buzzing”, he adds. 

Now, on a sunny Friday lunchtime in May, they are all but deserted. Growth levelled out after the 2016 Brexit vote, Gonzalez says. Since then, post-pandemic homeworking, rising costs and a squeeze on household finances have left London more “subdued”.

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