May 15, 2012

Urban America: US Cities in the Global Economy (2012) by McKinsey Global Institute

Book's Pages:  54;

This McKinsey Global Institute publication has many interesting insights but I will note a few that were very interesting to me.
  1. Large US cities will contribute more than 10% of global GDP by 2025.
  2. 80% of the US population lives in large cities.
  3. Almost 85% of US GDP was generated by 259 large cities in 2010.
  4. The cities that attract and retain new residents have greater chance of growing their GDP. The report even mentions something as "simple" as possessing universities that attract foreign students to be a benefit to GDP growth.
  5. Tokyo is projected to retain its position as the largest city by both GDP and population. The current largest cities by GDP are as follows (from largest to smallest):  Tokyo (Japan), New York (US), Osaka (Japan), Paris (France), London (UK), Los Angeles (US). 
  6. Atlanta, Georgia (the city in which I will be working) rose from being the 15th largest US city to 10th largest US city (GDP ranking). I like the fact that the median home price in Atlanta is $104,000 compared to the US city average of $110,000, San Jose's (California)  median price of $397,000 or Washington, DC, median home price of $191,000. If I decide to buy a home in Atlanta it would be at a relatively cheaper price than most other comparable cities.
  7. Some global cities are creating strategic ways to grow their GDP. For example, Netherlands aims to attract 50 significant international businesses through the efforts of its Dutch Innovation Platform that brings together government, business leaders and other key players. France has an Ambassador for International Investment. Singapore and Ireland have agencies that attract foreign direct investment. Chicago's World Business Chicago is an organization that developed a program to produce a fact-based analysis of Chicago's strength and weaknesses, define strategies to respond to future trends, and engage a broad set of stakeholders to assist in Chicago's economic growth efforts.
  8. Raleigh, North Carolina (the city in which I just graduated with a Master in Accounting degree last Saturday) is considered a "gazelle." A gazelle is a top performing city that has had significant GDP and population growth "by building on [its] strong university and research presence in growing tech industries." Austin, Texas is another example of a gazelle city.
The report is very insightful to businesses and policymakers who are thinking about tapping into the power of cities to help reap opportunities and/or assist in economic growth and development.

Click here to read this McKinsey Global Institute report


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