Image: London 2012 will deliver substantial benefits

London 2012, its build-up and subsequent legacy will generate £16.5bn of gross domestic product (GDP) for the UK's economy, according to Lloyds Banking Group (LBG).

A new report published by the group said construction and tourism were the key sectors in driving the economic boost, with the Games supporting 354,000 jobs nationwide.

The Economic Impact of the London 2012 Olympic and Paralympic Games covers the period from London being announced as host city in 2005 through to 2017.

In the five-year legacy period after the Games, LBG said the UK economy will be boosted by £5bn worth of games-related GDP - particularly in terms of physical infrastructure.

LBG chief economist Patrick Foley 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.

"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."

• The publication of the LBG research comes as initial findings from the government's GREAT tourism campaign show the 2012 Games are already having a positive impact.

During the first months of the campaign, the UK has outperformed some of its key global rivals and has established itself as a "top of mind" business and tourism destination.

Culture secretary Jeremy Hunt said: "London 2012 will be an opportunity like no other to showcase on the world stage everything that London and the rest of the UK has to offer.

"It's fantastic news for Britain that, one month before the Games begin, our GREAT campaign is already having such a positive impact on tourism and business."

Details: www.lloydsbankinggroup.com (Lloyds Banking Group)

Details: goc2012.culture.gov.uk (UK Government)

Image: LOCOG