By Benjamin Cost
Shanghai has topped the Brookings Institution’s list of the world’s 200 largest metropolitan areas who collectively comprise almost half the world’s economic activity.
Its number one ranking is based on a 5.8% augmentation in the city’s workforce and an astounding 9.8% economic increase in just one year, from 2010-2011. Following closely behind Shanghai are Saudi Arabia’s financial hubs, Riyadh and Jeddah.
Nearly scraping the bottom of the rankings at number 196 is Sacramento (the California state capital was the US’s worst-performer), which saw its employment and gross domestic product slip 1% last year and has been deemed “in full recession.” In general, the rather lop-sided list illustrates the continuing transfer of economic control from West to East.
The LA Times reports:
In Brookings’ list, released Wednesday, 90% of the world’s fastest-growing economies were outside North America and Western Europe. And 95% of the weakest-performing metro areas were in the long-dominant economic powers of the U.S., Western Europe and Japan
And China is leading the Easternization of the global economy, with eight cities in the list’s top 20 best-performing economies – Beijing and Chongqing ranking among the most notable after Shanghai.
Fortunately for the US, demand for US products has slightly boosted the formerly floundering economies of several of its manufacturing centers – namely San Jose (California’s top-ranking metro which includes the suburbs of Silicon Valley), Detroit, and Buffalo, which now occupy the list’s No. 61, 72, and 68 spots respectively.
But the overall trend points to a major financial power shift from the Western to Eastern superpowers. And despite potential future hiccups, China’s economy appears to be riding high, further amplifying your reasons to Go East, Young Man.