How U.S. Cities Drive the Global Economy

Brad Plumer discusses the findings of a new report from the McKinsey Global Institute that delves into the impact that U.S. cities have on the national and global economy, and assesses the reasons for their influence.

2 minute read

April 18, 2012, 8:00 AM PDT

By Jonathan Nettler @nettsj


Plumer expands on one of the key findings of the new McKinsey report, which found that, "the United States appears to be wealthier than Europe because it has a greater share of its population living in large, productive cities." This finding is based on data in the report that shows, "Roughly 83 percent of America's GDP came from its 'large cities,' defined as cities with a population of 150,000 or more. By contrast, China got 78 percent of its GDP from large cities and Western Europe got a surprisingly small 65 percent of its GDP from its large urban areas."

An article by Yuval Rosenberg in The Fiscal Times investigates one of the report's other key findings, that "Large U.S. cities are expected to generate more than 10 percent of global GDP growth in the next 15 years, a larger contribution than all of the large cities of other developed countries combined." The report attributes that advantage to America's second tier cities, rather than New York or Los Angeles, which "have economic and size advantages over the second tier of European cities."

"The U.S. has a broad base of cities such as Boston, Chicago, Washington, D.C., and San Francisco that are very large and important cities and contribute much more than their counterparts – let's say No. 3 to No. 30 in Western Europe," says Jaana Remes, a senior fellow at the McKinsey Global Institute and co-author of the new report. "It's the strength of the middleweight cities across the U.S. that really is the differentiator."

Tuesday, April 17, 2012 in The Washington Post

Aerial view of homes on green hillsides in Daly City, California.

Depopulation Patterns Get Weird

A recent ranking of “declining” cities heavily features some of the most expensive cities in the country — including New York City and a half-dozen in the San Francisco Bay Area.

April 10, 2024 - California Planning & Development Report

Aerial view of Oakland, California with bay in background

California Exodus: Population Drops Below 39 Million

Never mind the 40 million that demographers predicted the Golden State would reach by 2018. The state's population dipped below 39 million to 38.965 million last July, according to Census data released in March, the lowest since 2015.

April 11, 2024 - Los Angeles Times

A view straight down LaSalle Street, lined by high-rise buildings with an El line running horizontally over the street.

Chicago to Turn High-Rise Offices into Housing

Four commercial buildings in the Chicago Loop have been approved for redevelopment into housing in a bid to revitalize the city’s downtown post-pandemic.

April 10, 2024 - Chicago Construction News

View from middle of River Seine in Paris with Eiffel Tower on right side.

Seine Pollution Could Hinder Olympic Swim Events

Events like the triathlon could be impacted if tests continue to reveal high levels of dangerous bacteria in Paris’ famous river.

48 minutes ago - Euronews Green

Four-story light-colored multifamily apartment building.

How Financing Restricts the Rental Housing Market

The way apartment buildings are financed has a major impact on supply and costs.

1 hour ago - Strong Towns

Texas Bike Lane

Houston Mayor Pauses Complete Streets Projects

The move raises concerns among road safety advocates who point out that traffic deaths continue to rise.

2 hours ago - Governing

News from HUD User

HUD's Office of Policy Development and Research

Call for Speakers

Mpact Transit + Community

New Updates on PD&R Edge

HUD's Office of Policy Development and Research

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.