Which cities top the Oxford Economics rankings?
London ranks second globally, Paris third, Dublin sixth and Zurich tenth. Five US cities sit inside the top ten: New York, Seattle, San Francisco, Boston and San Jose. Oslo, Stockholm and Copenhagen follow. New York scores highest on the economy metric while London leads on human capital through its universities and ability to attract skilled workers. Paris recorded a particularly high score on quality of life. Dublin performed well on both environment and governance. Governance was also the main strength of Zurich and Oslo, with the latter receiving the highest governance score among leading European and North American cities.
How do European and American cities differ in strengths?
US cities excel in economic output and access to talent. European cities score higher on quality of life, governance and environmental sustainability. Paris performs strongly on liveability. Dublin and Zurich stand out for governance. Oslo receives the highest governance score among leading European and North American cities. Housing costs remain a drag on quality-of-life scores for London, Dublin and New York. For businesses seeking economic power and access to talent, American cities generally hold the advantage. New York received the maximum score on the economy index. Seattle, San Francisco and San Jose also placed particularly high in that category. Los Angeles combined a strong economy score with a relatively high liveability ranking. London is the notable European exception, achieving the highest human-capital score thanks to its universities, business environment and capacity to attract skilled workers. Yet quality of life was its lowest-scoring category at 77. The report notes that London, Dublin and New York continue to struggle under high housing costs, which weakens their liveability scores despite high incomes.
Which European cities climbed the most this year?
Dublin rose seven places to sixth, with improvements in economy, quality of life and environment. Warsaw recorded the largest European gain, climbing 109 places to 61st. Istanbul advanced 42 places to 64th. Madrid and Budapest each gained 14 places, reaching 30th and 111th. Helsinki rose 12 places to 26th. Brussels gained nine places. Rome fell eight places to 119th while Lisbon dropped 44 places to 148th. Frankfurt slipped one place to 63rd. Berlin and Lyon each climbed seven places. Zurich, Oslo and Amsterdam gained six places each.
Why are Warsaw, Tallinn and Eindhoven highlighted as cities to watch?
Warsaw has become the leading financial, technology and business-services centre in Central and Eastern Europe. Its economy is forecast to grow around 3 percent annually over the next five years, nearly double the average for European cities. Warsaw also overtakes Paris in average income per resident in 2026 when adjusted for purchasing power. Vilnius is expected to follow before the end of the decade. Tallinn is projected to record the strongest GDP growth among major EU cities over the coming decade. Technology and professional services play a significant role in its economy, while Estonia shows relatively high AI adoption rates compared with other Central and Eastern European countries. Eindhoven stands out as one of Europe’s top centres for research and advanced manufacturing. The Brainport region includes more than 5,000 high-technology companies active in semiconductors, artificial intelligence and green technology. Oxford Economics predicts that the city’s industrial output will record one of Europe’s strongest increases by 2030. However, housing supply may struggle to keep pace with the additional 28,000 residents expected by 2040. Manchester has surpassed every other UK city in GDP and productivity growth since 2010 and is forecast to create the fifth-largest number of new jobs in Europe over the next 25 years, mainly in financial and business services. Toulouse is described as one of the fastest-growing cities in Western Europe. Its aerospace cluster includes Airbus, Thales and Liebherr, and rising defence spending could support further growth. Lower living costs, a warmer climate and high quality of life are attracting residents from Paris and fuelling expectations of rapid population increase.
How is AI reshaping city prospects worldwide?
AI demand lifted Taipei 12 places to 48th through its semiconductor industry and TSMC facilities. Kuala Lumpur rose 14 places to 65th on the back of data centres and skilled labour. Shenzhen entered the top 100 at 93rd, anchored by Huawei, Tencent and BYD. Bangalore and other early AI adopters are also positioned for rapid gains if they deploy the technology effectively. The global AI boom is driving significant economic growth rates in cities at the forefront of development, according to Liam Sains, Director of City Services at Oxford Economics. Although the United States holds a clear advantage, several European cities are also well placed to benefit. London has the highest human-capital score, elite universities and a large digital economy. Eindhoven possesses a strong AI sector while Tallinn is an emerging technology hub. Cities at the leading edge of these technologies, including Shenzhen and Bangalore, could achieve rapid growth if they harness them effectively, the report concludes.
Frequently asked questions
Which city ranks first on the Oxford Economics index?
New York holds the top overall position, driven by the strongest economy score in the index.
Will Asian cities overtake Europe in global GDP share by 2050?
Projections indicate that the combined share of major Asian cities will exceed that of Europe by 2050, led by Shanghai, Shenzhen and Indian urban centres. Shanghai’s economy alone is expected to surpass that of San Francisco within the next year, although at the start of the century it was only one-quarter its size. Ho Chi Minh City’s economy is projected to be nearly as large as Berlin’s in the next 25 years, when today it is less than half Berlin’s size.
How does housing affordability affect city rankings?
High housing costs lower quality-of-life scores for London, Dublin and New York despite high incomes. More affordable cities can gain competitive advantage when rising incomes combine with lower housing expenses. Toulouse, for example, has attracted workers from Paris partly because of its relative affordability.
What role does AI play in the index results?
AI boosts cities at the forefront of hardware, software and data infrastructure. Taipei, Shenzhen and Eindhoven benefit directly from semiconductor, AI and advanced manufacturing clusters.
Which cities are expected to create the most new jobs?
Manchester is forecast to generate the fifth-largest number of new jobs in Europe over the next 25 years, mainly in financial and business services.
