"New York is and will still be the largest urban economy in the world in 2035, but many other cities will be growing at a faster rate, according to Oxford’s projections."
New York City might still have the largest economy of cities in the U.S., but two dozen other cities will grow at a faster rate in the next 16 years, according to a recent nationwide study.
Oxford Economics annual “Global Cities” report explores key economic trends across the world from now until 2035 and dishes rankings of the world’s largest and fastest-growing urban economies. With a projected annual output of $2.5 trillion, New York is and will still be the largest urban economy in the world in 2035, but many other cities will be growing at a faster rate, according to Oxford’s projections.
San Jose, California, is projected to have the fastest growing gross domestic product between 2019 and 2035, according to Oxford. Portland, Austin, Seattle and Charlotte follow up San Jose, respectively.
Benefiting from a vibrant technology industry and a highly-skilled workforce, San Jose will continue on a strong path of growth, Oxford predicted. The organization forecasts GDP growth of over 3 percent per year through 2035 for San Jose.
“San Jose, which offers a powerful high-tech, entrepreneurial ecosystem combining research universities, investment capital and a cultural affinity for risk-taking tops our league of the fastest growing U.S. cities to 2035,” Oxford wrote. “Because intellectual property investment, such as software and computing platforms, should continue to drive growth in U.S. business spending in the coming decade, San Jose — which is synonymous with Silicon Valley — should outperform.”
High-tech goods production, mainly with semiconductors will also benefit Portland, which ranked No. 2, according to Oxford.
“Portland’s economy is reliant upon the production of computing equipment and other high-value hardware,” Oxford wrote. “The good news is future demand for these products is upbeat via growth in the ‘Internet-of-things’ and general business investment in technology. Nationally, this sector is expected to grow by over 4 percent annually through at least 2022.”
The digital economy is also the driving force behind the projected growth of Austin, Oxford argued.
“Austin is buoyed by its upbeat demographics and notable tech exposure: Dell, IBM, and Apple all have a presence here,” the company wrote. “Computing equipment manufacturing brings a lot of money into Austin’s economy and supports high-paying technician and engineering jobs. High-tech goods production in Texas is expected to grow by 4 percent annually, and Austin will be a key contributor to this.”
Check the list below to see the Top 25 city projections for the fastest GDP growth in the next 16 years.