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Hotel Guide for Edinburgh

Economy - Edinburgh United Kingdom

Economy - Edinburgh

The economy of Edinburgh is largely based around the services sector centred around banking, financial services and tourism. Unemployment in Edinburgh is low at 2.2%, which has been consistently below the Scottish average.The city is one of the most prosperous parts of the country and has the strongest economy of any city in the UK except London. Banking has been a part of the economic life of Edinburgh for over 300 years with the invention of capitalism in the city, with the establishment of the Bank of Scotland by an act of the original Parliament of Scotland in 1695. Today, together with the burgeoning financial services industry, with particular strengths in insurance and investment underpinned by the presence Edinburgh based firms such as Scottish Widows and Standard Life, Edinburgh has emerged as Europe’s sixth largest financial centre.[8] The Royal Bank of Scotland, which is the fifth largest in the world by market capitalisation, opened their new global headquarters at Gogarburn in the west of the city in October 2005. Manufacturing has never had as strong a presence in Edinburgh compared to Glasgow; however brewing, publishing, and nowadays electronics have maintained a foothold in the city. Whilst brewing has been in decline in recent years, with the closure of the McEwan's Brewery in 2005, Caledonian Brewery remains as the largest, with Scottish and Newcastle retaining their headquarters in the city. Tourism is an important economic mainstay in the city. As a World Heritage Site tourists come to visit such historical sites as Edinburgh Castle, the Palace of Holyroodhouse and the Georgian New Town. This is augmented in August of each year with the presence of the Edinburgh Festivals, which bring in large numbers of visitors, generating in excess of £100m for the Edinburgh economy. As the centre of Scotland’s devolved government, as well as its legal system, the public sector plays a central role in the economy of Edinburgh with many departments of the Scottish Executive located in the city. Other major employers include NHS Scotland and local government administration.