Curious what the top 10 richest cities in the world are? The global economy is experiencing a paradigm shift in a focus towards Asia. The list below of the most impressive cities in the world provides one indication of this shift. Listed according to their GDP per capita, these cities are the urban elite of their respective countries; which in Asia constitutes 60% of the world’s metropolitan economy, excluding the USA.
To note: this is a different classification than a previous analysis of ours, which tracks the best job markets today on a country-by-country basis.
A country’s GDP is determined based on the output and capital generated in its major cities in comparison to the rest of the cities in the country. Countries like Japan, China and the UAE are developed countries not only based on their overall performance but mostly because of the streamlined cities that have become their true source of income and trade.
It is also argued that urban population density forms the basis on which a city generates high GDP. Various economists have argued that GDP per capita is greater with high population density whilst others believe it works the other way around.
However on comparing these cities it was found that there was no significant correlation between population density and GDP per capita, because as it is apparent from the data in this list the city with the highest GDP per capita, Abu Dhabi, is not as populated as Singapore.
Another metric for measuring GDP per capita lies in the use of technology. Technology can only be implemented in certain countries and cities that have the capital and resources to admit it in their economy. This is why many cities fail to capture the productivity that can be drawn from the use of technology, whereas cities known as the vanguard of technology outperform and establish an improved standard of living.
Access to large markets is necessary to promote trade and this requires transportation. Transportation costs are a burden on the economy, especially because of fuel costs and air pollution even if subsidies cover other costs. Therefore, commitment to technological improvements and R&D can bring the distant markets, like Australia, Canada and Poland, closer to creating not only a green environment but also improving the economy.
Thus, investment in capital, in terms of human and physical, and efficient use of technology form the basis for determining a city’s quality of life provided that the economy has the strength to implement. The growth rate of population is also essential as human resources enables cities and countries to grow; unlike Tokyo which faces a shrinking working age population and lower birth rates. All of these variables must be a part of economic policy to generate greater value in output through improvements in machines, research and development, and quality education that will collectively provide the residents of a city with an enriched quality of life.
This list is a representation of the cities that belong to other parts of the world excluding the USA to show metropolitan areas that contribute the most to the global metropolitan economy, and cities that encourage the advancement of society.
Let’s take a look at the 10 richest cities in the world: