Top regional hubs to watch in 2025

Analyses of city competitiveness and importance often focus on global leaders like New York, London, and Tokyo, as these cities are among the largest in the world and drive the global economy. But another group of cities is quietly emerging as important centres in their own right, setting the pace for progress within their respective countries and regions, which we call Regional Leaders.

In our recent 2025 update of the Global Cities Index, we have developed a typology of city archetypes to identify common themes across the world’s major cities. Classifying cities in this way reveals key opportunities and challenges for each group, enabling business leaders and policymakers to better benchmark a city’s current performance against a subset of similar peers around the world.

We have identified over 60 cities around the world that fit the “Regional Leaders” archetype. These cities may not be as economically powerful as the Global Leaders on the world global stage, but they have become instrumental to economic growth in their respective countries and regions. As with our other archetypes, these cities distinguish themselves across a range of metrics, including:

1. robust rates of economic growth and income per person, consistently outperforming their country-wide averages;
2. high levels of business activity and a large number of universities; and
3. they are located all over the world, in both developing and developed countries.

From Denver to Delhi, these cities are shaping the futures of their regions

While Regional Leaders span the globe, several can be found in the US. Cities like Denver, Houston, Atlanta, Philadelphia, and Minneapolis have become key drivers of the US economy. Denver, for instance, has positioned itself as a pioneer in the professional and information sectors, allowing it to attract talent from other parts of the country. Peers Houston, Atlanta, Philadelphia, and Minneapolis have capitalised on their strengths in different sectors, and we expect them to post solid GDP growth rates for the next five years. While all are relatively smaller in scale than Global Leaders New York, San Francisco, and Los Angeles, these cities have cemented themselves as anchors within the US economy, especially in their respective regions of the country.

In Asia, cities embody a different kind of regional leadership, as these metros can combine rapid growth, large labour pools, and expanding sectors. Bengaluru, Delhi, Shenzhen, Ho Chi Minh City, and Manila are among the cities powering Asia’s economic future. Bengaluru, for example, is emerging as the centre for India’s tech exports (with an exceptional average GDP growth of 8.9% expected for the next five years), while Delhi serves as the country’s cultural and political capital. Elsewhere in Asia, Shenzhen has established itself as China’s main electronics manufacturing hub, Ho Chi Minh City as Vietnam’s commercial capital, and Manila as a service-sector powerhouse. While each city faces certain structural challenges, they have positioned themselves as key nodes in the regional value chain, offering businesses a broader market reach.

And the same can be said for their European counterparts. Brussels, Stockholm, and Warsaw are a few of the key regional hubs in Europe, all playing a significant role in economic development of their respective countries and the wider continent. Brussels, for instance, plays a unique role as the administrative hub of the EU, while also positioning itself as a growing business hub. Stockholm stands out as not only the top Swedish city in our index, but also as the leader of the Nordic region. It is the largest Nordic city by both population and GDP, and its diverse economy means that it is well-equipped to manage sector-specific shocks and downturns. It’s this diversity that gives Stockholm its 14^th place in our Global Cities Index, and part of the reason why we expect GDP growth to average 2.3% over the next five years. Stockholm’s eastern neighbour Warsaw also distinguishes itself as a Regional Leader, thanks to its consistent economic performance, strong educational institutions, and hosting of numerous multinational corporations.

Indeed, while these cities all differ in terms of geography, culture, and focus, they share several common features, and the classification of them as Regional Leaders implies that they can offer similar opportunities for businesses.

For example, while Rio de Janeiro and Jakarta are two cities that, on the surface, may not share many similarities, as Regional Leaders (and megacities) they are both economic hubs within their regions, driving growth and attracting investment. This makes them key entry-points for businesses looking to tap into large, fast-evolving markets with expanding regional focus. Santiago and Atlanta may not appear to be peers, but each city is a transport and logistics hub for its region, yet both rank in the 300s on the Quality of Life indicator in our Global Cities Index (highlighting a shared opportunity for improvement). The same could be said for Copenhagen and Melbourne, both projected to see GDP growth of around 2.7% by 2029, while grappling with similar issues surrounding high housing expenditure and ageing populations—despite being on opposite corners of the globe. While contexts vary, the comparison of these cities not only reveals potential markets for businesses, but they offer peer cities for policymakers to learn from.

Opportunities and challenges ahead

Regional Leaders are generally well-equipped to weather the storms of economic uncertainty, but significant challenges remain. With deglobalisation on the rise and trade wars increasing barriers, this significantly reduces access to large markets in other countries. As many Regional Leaders rely on these markets for trade and don’t have the same economic might of the Global Leaders to help withstand trade disruptions, we expect that both growth and innovation will take a hit in the coming years. 

But, if the cities can leverage their positions as regional hubs, they may be able to grasp certain opportunities. For instance, while Regional Leaders sometimes fly under the radar compared to the Global Leaders, their more manageable scale often lends itself to a key competitive advantage: greater affordability. As they are less burdened by increasing housing costs and affordability concerns, Regional Leaders make for attractive, cost-effective alternatives to Global Leaders—for businesses, employees, and governments alike. We anticipate that this feature will not only boost population growth, but it will also attract investment over the coming years.

For the next 25 years, while Regional Leaders are not forecast to grow as quickly as the Developing Megacities and the Emerging Standouts, they are expected to post robust GDP, employment, and population growth rates overall—even growing faster than the Global Leaders, on average, across these metrics. In a shifting global landscape, knowing which cities lead regionally gives decision-makers actionable insights to navigate an increasingly complex economic landscape.