According to a new research study by PricewaterhouseCoopers (PwC), the financial sector of the UK could boost the economic growth in the country by 2 to 3 per cent during this decade.

The research firm said that the embattled financial sector requires effective regulation and favourable economic conditions to contribute higher to the UK economy. The report said that if the sector is not managed well and it continues to languish, it would contribute only 0.2 per cent rise in gross domestic product and create only 12,000 more jobs.

The report said that the good regulation combined with robust economic conditions in the economy would result in the creation of 47,500 new jobs in financial services by the year 2020. The effect of a recovery in the financial sector would be the creation of 45,900 more manufacturing jobs, 41,600 in retail and 67,400 in general services.

The report said that London is expected to benefit the most from the recovery in the financial sector with a total of 132,800 new jobs by 2020. On the other hand, Northern Ireland would benefit the least with the creation of just 2,900 new jobs till 2020.