City profile

Edinburgh, Scotland's compact and hilly capital, boasts a population of nearly 500,000. Known for its rich history and striking architecture, the city has a GDP per capita of approximately US$40,000. Edinburgh is celebrated as a leading centre for education and literature, home to the prestigious University of Edinburgh and renowned as the world's first UNESCO City of Literature. A distinguishing characteristic is its vibrant cultural festivals, including the world-famous Edinburgh International Festival and Fringe, which transform the city into a global hub for the arts every summer.

Edinburgh's scores highly for Liveability and Loveability. It offers a high quality of life marked by safety, a range of leisure activities, a rich cultural life and extensive green spaces like Holyrood Park, enhancing residents' well-being and making the city highly desirable for living and working. However housing availability and affordability is an ongoing issue for residents.

It has the potential to be very attractive to investors, given its stable economic environment and burgeoning sectors such as technology and financial services. It also has  an educated workforce from prestigious institutions such as University of Edinburgh and Heriot-Watt University. Its robust digital infrastructure positions the city well for capturing future economic opportunities.  

However, the city's infrastructure, particularly in terms of transportation, struggles with accommodating the rapid growth in both population and tourism, which occasionally leads to congestion and overburdened public services. There is also increasing pressure in the transport, logistics and warehousing sectors both in the city itself and UK-wide.

Insight

In the last few decades, trends like globalisation and the development of ecommerce, have led to considerable growth in the transport, logistics and warehousing sector of the economy. In the UK, Office of National Statistics figures show that the sector has grown by 88% in the 10 years to 2021 with 21% growth between 2019–2021 alone. This acceleration has been mainly fuelled by Brexit, the COVID-19 pandemic and has yet to plateau since the pandemic ended. Decarbonising the freight and logistics sector involves major changes in practices, use of resources and technology, as well as investment in new vehicles. Fleet upgrades, facility upgrades and user training are likely to be costly for business and with the increase in consumer spending trending upwards, the pressure to provide a high standard of service with fast and responsive delivery will add to these fiscal pressures.
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