Trade, Empire and London's Growth
Britain's international trade expanded dramatically during this period. The East India Company brought the first saltpetre shipment from India in 1626, which was then re-exported to continental Europe. Pepper sales by the company began in 1627, marking the start of profitable trade with the East.
The Navigation Acts passed in 1660-1663 limited trade between England and its colonies to English (or colonial) shipping. This legislation aimed to break Dutch trade monopolies and boost English commerce, though some aspects of international trade remained limited. The triangular slave trade, which would later become enormously profitable, was only beginning to develop by 1688.
London's growth was particularly transformative for the economy. By 1688, it had become the main centre for overseas trade due to its excellent port facilities. Banking and insurance services expanded significantly, with the first money-scrivening (early banking) firm established in 1636 by Robert Abbott. Between 1652 and 1655 alone, over £1.1 million passed through Abbott's accounts.
Important insight: The development of marine insurance in London was crucial for economic growth - by 1657, even Dutch merchants were being insured by English brokers, showing London's growing financial dominance.
While London thrived, growth in other British towns and cities remained gradual, with many continuing to simply support their local rural economies. Despite this limitation, London's population growth increased demand for agricultural products throughout the country, creating economic ripple effects nationwide.