Trends are reinforcing the strength of major cities
Global shifts, technology, and demographics are helping leading cities stay competitive and drive economic growth.
As the economic geography of the globe has shifted eastwards, many cities across Europe and North America have had to contend with anaemic productivity growth, stalling household income levels, and the political and economic repercussions of a declining manufacturing base.
Sectors that have historically been the preserve of major Western economies, including advanced manufacturing and professional business services, are facing much more competition as Asian cities move up the value-added chain and diversify.
Tariffs and rising energy prices have compounded these challenges and further undermined industrial hubs across Europe and North America. The impact can already be seen in parts of Europe where major manufacturing cities, such as the industrial cities of Germany, have posted increasingly weak economic growth figures and underperformed relative to their more service-oriented peers.
Future trends are likely to embed these advantages, with AI and automation strengthening the knowledge economy and placing these innovative cities in a strong position to capture the opportunities. Our medium-term forecasts reflect this—in the US we forecast metros with less legacy manufacturing and more tech-focused sectors to see the highest GDP growth in the period to 2029.
Demographic trends further support the strengths of major cities across the world, with younger workers attracted to the amenity and employment offer of urban centres, helping reduce exposure to an ageing society.
Download the full report to explore which cities are driving growth and shaping the future of the global economy.
