Through the centuries,  cities have been the engines of economic influence and growth. Asia was the center of global trade until the 1500s. In the 18th and 19th centuries, urbanization—fueled by industrialization—established the United Kingdom and the U.S. as global powers. Today, the world is experiencing another economic transformation: China, according to the consulting firm McKinsey & Co., is urbanizing on a scale 100 times that of the United Kingdom—at more than 10 times the speed. “The earth’s economic center of gravity is shifting from cities in the developed world to those of emerging markets at an unheard-of pace,” McKinsey reports.

The consulting firm analyzed the latest economic and demographic trends of 2,657 cities worldwide to compile a list of the top 600 cities by their anticipated contribution to global GDP growth from 2010 to 2025. See how the composition of the leading 20 cities in a variety of categories could shift the balance of economic power and influence the way companies think about global markets.

Source: McKinsey Global Institute Cityscope 2.0, “Urban World: Cities and the Rise of the Consuming Class, ” June 2012

By 2025, the combined GDP of the fastest-growing 600 cities will account for almost 65 percent of world economic growth.

Only  4 cities  will be in  developed regions

Cities in emerging markets—440 of the leading 600—will have a big economic role, contributing 47 percent of global growth by 2025.

13  of the world’s top  20 fastest growing cities  will be in  China

The increasing size of cities will produce 1 billion new consumers by 2025.

About  600 million  of those new urban consumers will live in  emerging-market cities  where the population of young consumers will grow  faster  than in developed cities*

*Growth in population aged ≤14 with household income $7,500–$20,000 by purchasing power parity (PPP)

Consumers from the 440 emerging-market cities will inject about $10 trillion a year in additional spending into the world economy.

Over the next decade, sales of  laundry  care products will grow  faster  in  São Paulo  than in either  France or Malaysia*

*Predicted growth in consumer spending on laundry care products for the period 2009-2020.

Annual infrastructure investment in cities will have to more than double from almost $10 trillion today to more than $20 trillion by 2025.

Emerging cities  need to allocate close to 75 percent  of their infrastructure investment  to satisfy increasing demand for  water

Cities will need to add the equivalent of 85 percent of today’s urban residential and commercial building stock—an area the size of Austria.

The urban  building boom  will require  investment  of almost $80 trillion. Nearly  40 percent  of new construction will be in  China

Municipal water demand is expected to rise by 40 percent above today’s level—equivalent to more than 20 times the water consumption of New York City. The cities with the largest growth in demand for water will be in India.

Overall,  investment  in  water supply and wastewater treatment  will require about  $480 billion  by 2025

Spending by consumers and investment in infrastructure could inject more than $30 trillion a year into the world economy by 2025.

By that time,  urban consumers
are likely to inject  $20 trillion  a year in additional spending  into the world economy*

*Growth in population aged 65+ with household income >$20,000 by purchasing power parity (PPP)

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