The report examines the overall impact that the Olympic and Paralympic Games is likely to have on the UK's economy, taking in the period from London's successful bid in 2005, through until 2017 – a five year legacy period.
It demonstrates that the event is driving activity across the key sectors of construction and tourism, leading to jobs, expenditure and opportunities for businesses across the UK – in both the short and long-term - and it shows that SMEs are contributing more than half (52%) of the overall increase.
Patrick Foley, chief economist, Lloyds Banking Group, said: "London 2012 is the most important sporting event the UK has ever staged. However, it is also impacting our economy in a way that cannot be ignored. We've witnessed a construction project on an unprecedented scale, the economic ripples of which are being felt not only in the host city, but across the UK.
"As this study demonstrates, London 2012 will help support employment, tourism, consumer spending and living standards, not only this year, but for many years to come. And it could not have come at a better time, given the tough conditions in the UK economy."
John Maltby, group director, commercial, added: "The London 2012 economic engine is being fuelled by thousands of small and medium sized businesses, many of whom are based outside London in towns and cities that might otherwise have assumed they had nothing to gain from the Games.
"We know that these businesses hold the key to growth, and even if it is still uncertain whether London 2012 can help to kick start a sustained economic recovery, the benefits to businesses are clear – unprecedented opportunities for trade and a real competitive advantage in years to come; invaluable training and experience for employees; and an incredible contribution to economic activity across the UK. But it must not stop there. The challenge now is for these businesses to build on what they have gained from the Games so that they can continue to grow and so that others might follow their lead."
Other key findings from the report
• Construction and tourism are the key sectors driving this increase.
• More than half the increase in GDP impact from tourism and construction is being generated by SMEs.
• First five legacy years set to provide £5bn of games-related GDP.
• 'Happiness effect' equivalent to a £165 gift to each of the UK population.
• Games set to support 354,000 years of employment nationwide.
• Economic impact of the Games can be seen across the UK.
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