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

Get top-rated, practical training

Wastewater pouring out from a pipe.

Alabama: Trump Terminates Settlements for Black Communities Harmed By Raw Sewage

Trump deemed the landmark civil rights agreement “illegal DEI and environmental justice policy.”

April 13, 2025 - Inside Climate News

High-rise apartment buildings in Waikiki, Hawaii with steep green mountains in background.

Study: Maui’s Plan to Convert Vacation Rentals to Long-Term Housing Could Cause Nearly $1 Billion Economic Loss

The plan would reduce visitor accommodation by 25% resulting in 1,900 jobs lost.

April 6, 2025 - Honolulu Civil Beat

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.

April 10, 2025 - Diana Ionescu

A line of white wind turbines surrounded by wheat and soybean fields with a cloudy blue sky in the background.

Wind Energy on the Rise Despite Federal Policy Reversal

The Trump administration is revoking federal support for renewable energy, but demand for new projects continues unabated.

6 hours ago - Fast Company

Red and white Caltrain train.

Passengers Flock to Caltrain After Electrification

The new electric trains are running faster and more reliably, leading to strong ridership growth on the Bay Area rail system.

7 hours ago - Office of Governor Gavin Newsom

View up at brick Catholic church towers and modern high-rise buildings.

Texas Churches Rally Behind ‘Yes in God’s Back Yard’ Legislation

Religious leaders want the state to reduce zoning regulations to streamline leasing church-owned land to housing developers.

April 15 - NBC Dallas