Kearney Releases 2024 Global Cities Index

New York Ranks #1, San Francisco Tops Outlook Chart

• Overall trends show adaptability, resilience in the face of challenges
• Global Cities Index shows 3 U.S. cities in the top 10: New York (#1), Los Angeles (#7), and Chicago (#10)
• San Francisco #1 in Global Cities Outlook for 2nd year
• New Global Cities assessment criteria—particularly digital infrastructure—helped several U.S. cities rise in the ranks
• Despite a general decline in foreign investment, Latin American economies have grown

CHICAGO, Oct. 29, 2024 /PRNewswire/ -- Global strategy and management consultancy Kearney today released its 2024 Global Cities Report, Resurgent in a world at risk. The new research assesses and quantifies how the global reach of cities has become more diversified, increasingly digital, and vastly uncertain in the near term. With shifts in the global geopolitical and macroeconomic landscape bringing the decline of globalization by traditional measures, the performance of global cities signals the emergence of the next wave of global connectivity and exchange.

"Amid a year of geopolitical instability, economic fluctuations, and widespread social and political change, global cities have remained as resilient and dynamic as ever," said Brenna Buckstaff, Principal in Kearney's Global Business Policy Council. "This year's Global Cities Report highlights how, despite immense global challenges, cities continue to innovate and adapt, emerging stronger and more connected. As traditional models of globalization evolve, global cities are poised to lead the way, shaping the future of international cooperation and economic exchange."

Global Cities Index

This year's Global Cities Index introduced new metrics to reflect the macro changes in the global operating environment, including measures of digital readiness and human mobility. Global cities have demonstrated remarkable resilience in the face of challenges posed by a shifting and uncertain global order, with average scores rising across every dimension.

The success of key cities this year highlights their adaptability; for example, those that enhanced air freight capacities in the wake of disruptions in sea shipping came out ahead. Leadership in digital capabilities also marks a key advantage, as cities like Chicago, Dallas, Frankfurt, Shanghai, and Singapore rose in the ranks thanks to the introduction of new metrics of Internet speed and data centers. The GCI results also underscore the ever-growing importance of the digital economy, with the trade of digital services and the presence of top global services firms driving success in the Business Activity dimension.

While Europe remains the region with the highest average scores, cities in North America and the Asia-Pacific Region saw the most significant improvements. The top four cities in the GCI, New York, London, Paris, and Tokyo, retained their leading spots from last year with new criteria measuring digital infrastructure strengthening their positions. Singapore displaced Beijing as the fifth-ranked city, while Shanghai broke into the top 10 for the first time.

Global Cities Outlook

While the GCI captures the current state of global city leadership, the Global Cities Outlook (GCO) aims to identify those cities most likely to achieve global prominence in the future. This year, the outlook exhibited significant dynamism with emerging hubs continuing to rise in hopes of rivaling the dominance of established leaders. San Francisco, Munich, Copenhagen, Luxembourg, and Seoul topped the list.

U.S. cities showed signs of economic recovery, with rank increases in the Ease of Doing Business and GDP per capita metrics. Infrastructure investments, particularly under the Bipartisan Infrastructure Law and the Inflation Reduction Act, have propelled all U.S. cities upward in the GCO's infrastructure rankings.

Globally, a downturn in Foreign Direct Investment (FDI) has strained cities' ability to attract investment. Chinese cities in particular have seen rank declines in FDI inflows, with Guangzhou, Shanghai, and Quanzhou experiencing sharp drops. Instead, we see its growth in emerging economies in Latin America, the Middle Eastern Gulf nations, and Southeast Asia. India, Indonesia, Vietnam, and Japan have seen elevated FDI rankings, evidence of the "de-risking" strategies of Western economies looking to reduce reliance on China.

A look ahead: regenerative cities

While global cities have adapted to geoeconomic pressures, they also face growing environmental challenges exacerbated by climate change. Climate disasters have caused significant financial losses, and cities—being major consumers of energy and producers of greenhouse gas emissions—are both victims of and contributors to these issues.

"We see significant efforts from cities to address challenges related to sustainability and climate change, but too often these are piecemeal reactions," noted Kearney Partner Mike Hales. "Cities must shift their perspective toward being more systems-oriented and proactive, particularly through digital adaptability. We call this a regenerative approach—one that focuses on building institutional capabilities and readiness to address the challenges of today and tomorrow holistically, and for the benefit of all."

Learn more about the Kearney 2024 Global Cities Report here.

About the Kearney Global Cities Index and Global Cities Outlook
The GCI assesses how globally engaged cities are across five dimensions: business activity, human capital, information exchange, cultural experience, and political engagement. The GCO, on the other hand, examines how cities are creating the conditions for future status as major global players. This analysis covers four dimensions—personal well-being, economics, innovation, and governance—which are the key determinants of a city's ability to attract talented human capital, generate economic growth, increase competitiveness, and ensure stability and security.

While the GCI quantifies the current state of urban centers, the GCO is a measure of how these same cities are ensuring that they can retain—or augment—their global city status in the future. The GCO is designed to spotlight not only the well-established leaders, but also those cities that may be best positioned, thanks to strategic investments in future performance, to challenge their supremacy.

About Kearney
Kearney is a leading global management consulting firm. For nearly 100 years, we have been a trusted advisor to C-suites, government bodies, and nonprofit organizations. Our people make us who we are. Driven to be the difference between a big idea and making it happen, we work alongside our clients to regenerate their businesses to create a future that works for everyone. www.kearney.com

U.S. Media Contact:
Meir Kahtan
Meir Kahtan Public Relations
[email protected]
+1 917-864-0800

View original content to download multimedia:https://www.prnewswire.com/news-releases/kearney-releases-2024-global-cities-index-302289427.html

SOURCE Kearney