- Big Apple earns the top dollars followed by Tokyo and Los Angeles
- US has six of the terrific 10 biggest earning global cities
- Europe represented in top 10 earning cities by London and Paris
- Tokyo has largest city population with 38.2 million citizens and is forecasted to be overtaken by Manila
- Asia Pacific has highest number of cities in the top 100 for total population
LONDON, UK – New York is the highest earning city in the world from goods and services generating USD2.3 trillion in 2023, a study by Euromonitor International has found.
The Big Apple produces the top dollars from Gross Domestic Product (GDP) globally, with Tokyo in second place and Los Angeles making up the top three in 2023. The US has six of the top 10 earners. Europe has two with London and Paris, while Seoul takes the other coveted top 10 place.
Tokyo, long renowned as the city with the largest population with 38.2 million citizens, is forecast to be overtaken by Manila between 2024 and 2040.
Top 10 cities accounted for 10% of global GDP
Aleksander Svidler, Economies Consultant at Euromonitor International, said in her Global City Trends 2023 report scrutinising 1,209 cities, that five key trends were shaping successful cities; digital capabilities and connectivity, climate action planning, urban strategy, clean, seamless mobility and rapidly emerging economies.and rapidly emerging economies.
“The top 10 cities accounted for 10% of global GDP in 2023, with New York, Tokyo, Los Angeles, London and Paris at the forefront in terms of total GDP. This highlights the immense wealth, product capacity and economic influence concentrated in the world’s largest urban areas. Urban areas will remain the key engines fueling global economic growth.
“By 2040, nearly two thirds (64%) of the world’s population will be living in cities, with developing markets driving most of the urban demographic surge. Notably, Sub-Saharan African cities, like Luanda and Lagos, will record the strongest growth. While this demographic boom will offer business opportunities, it will also raise social and economic challenges in managing the expansion.” 
Developing cities creating middle class earners with surge in disposable incomes
Developing cities, particularly in Asia, are emerging as the frontiers for economic growth with surging disposable incomes creating a new urban middle class. Svidler said that as a bigger share of consumer money is devoted to discretionary spending, this will bring more opportunities for domestic and international businesses to capitalise on. Discretionary spending is money spent on non-essential items.
Many urban areas are characterised by ageing populations, with East Asian cities expected to see a large increase in the elderly population by 2040. “There are opportunities to expand product and service offerings tailored to older people,” added Svidler.
Cities will be home to 64% of global population lured by economic and lifestyle opportunities
Svidler said urbanisation is set to reach new highs over the next two decades driven by population growth, economic development, and the allure of urban lifestyle. By 2040, 5.8 billion - 64% of the world's population - will be residing in cities. Developing markets will remain key engines of global urbanisation, driving 95% of global cities population growth by 2040.
People flocking to live in Asian cities will be driven by rural-to-urban migration supported by economic opportunities, infrastructure development, industrialisation and technological advancements. Government policies improving education and healthcare access will further stimulate urban growth.
Tokyo in Japan, long renowned as the city with the world’s biggest population is facing demographic challenges from steadily declining birth rates and rising mortality rates. Manila in the Philippines is set to surpass Tokyo as the city with the biggest global population by the middle of the next decade.
Sustainability is a key focus for cities accelerating the energy transition
Svidler said cities account for most of the world’s energy use and greenhouse gas emissions. This is driving the need for urban areas to take greater steps to tackle climate change and address environmental challenges. Renewable energy sources, energy efficiency measures, clean mobility and circular economy solutions are being increasingly embraced to reduce carbon footprint, mitigate climate change impact and promote a greener future.
“Smart, sustainable and thoughtful urban planning is key for fostering inclusive and resilient cities, with a focus on efficient land use, affordable housing, green spaces and eco-friendly infrastructure to create healthier and more livable urban environments.
“Urban mobility strategies prioritise clean and efficient transportation systems, integrating public transit, cycling infrastructure and electric vehicles to reduce congestion and pollution, and enhance accessibility for all.”
For more information see Euromonitor’s Global City Trends 2023 report.
For further information, please contact:
Euromonitor Press Office
Press@euromonitor.com
About Euromonitor International
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