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

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 2, 2025 - Diana Ionescu

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

White and purple sign for Slow Street in San Francisco, California with people crossing crosswalk.

San Francisco Suspends Traffic Calming Amidst Record Deaths

Citing “a challenging fiscal landscape,” the city will cease the program on the heels of 42 traffic deaths, including 24 pedestrians.

July 1, 2025 - KQED

Google street view of red brick multi-story power plant building in Pittsburgh, PA.

Defunct Pittsburgh Power Plant to Become Residential Tower

A decommissioned steam heat plant will be redeveloped into almost 100 affordable housing units.

July 4 - Pittsburgh Post-Gazette

Cyclist on protected bike lane in middle of street in Washington D.C. with Washington Monument obelisk visible in background.

Trump Prompts Restructuring of Transportation Research Board in “Unprecedented Overreach”

The TRB has eliminated more than half of its committees including those focused on climate, equity, and cities.

July 4 - Streetsblog USA

Blue and silver Amtrak train at small station.

Amtrak Rolls Out New Orleans to Alabama “Mardi Gras” Train

The new service will operate morning and evening departures between Mobile and New Orleans.

July 3 - New Orleans City Business