More than half the global population lives in cities, according to a new report from Citi and the Economist Intelligence Unit.
And they account for 80% of GDP.
In the next 30 years, nearly all growth is expected to come from cities.
Cities in North America and Europe will continue to be the world's most competitive till 2025. But major cities in emerging markets like Brazil to India boosted their global competitiveness.
A few major takeaways from the report:
- São Paulo, Incheon, and Mumbai are the top movers between 2012 and 2025. Improved infrastructure, economic progress, and improved cultural vibrancy have been a boon to emerging market cities.
- North American and Western cities still reign. They attract capital, businesses, tourists, and a talented work force.
- The Eurozone crisis will impact Southern and Eastern European cities. Madrid, Rome, and Bucharest all became less competitive.
- Slowing Chinese growth. No Chinese city is ranked among the top 25 most improved, largely due to how much progress they made during the 2000s.
The report takes into account metrics like economic growth, human capital, financial maturity, and global appeal. We've picked out a few key categories from the report to highlight the world's most competitive cities.
#11 Zurich
Overall score: 64.1 (tied with Taipei)
Economic strength: 19.1
Financial maturity: 100.0
Physical capital: 98.2
Institutional effectiveness: 80.6
Human capital: 74.2
Cities of all sizes made it onto the list of the world's most competitive. Zurich, for example, only has a population of 1.4 million. There is no correlation between population and competitiveness in the index.
All scores are out of 100.
Source: Citigroup
#4 Hong Kong
Overall score: 68.1
Economic strength: 28.7
Financial maturity: 100.0
Physical capital: 100.0
Institutional effectiveness: 83.6
Human capital: 74.0
Hong Kong scored highly due to its "well-run, densely populated" area on the southern coast of China, making it a major economic hub.
All scores are out of 100.
Source: Citigroup
#3 Singapore
Overall score: 71.2
Economic strength: 33.5
Financial maturity: 100.0
Physical capital: 100.0
Institutional effectiveness: 83.5
Human capital: 76.8
Singapore is a paragon of efficiency. Its transportation, bureaucracy, safety, and cleanliness helped the growing metropolis achieve #3 status.
All scores are out of 100.
Source: Citigroup
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