- London’s cultural sector remains the strongest globally, securing the top spot for international museums, sporting events, and tourism
- London suffered a small score decrease in business activity as well as a decrease in human capital score, primarily driven by barriers to entry into the United Kingdom
Leading consultancy Kearney has today released its latest 2024 Global Cities Report, reaffirming London’s position as a leading global city. For the sixth year in a row, London ranks second in the Global Cities Index (GCI). Despite the ongoing political and economic uncertainty, London demonstrates consistent strength across key dimensions, including business activity, human capital, and cultural experience.
Global Cities Index (GCI) Overview
The 2024 Global Cities Index assesses 156 cities worldwide based on their global connectivity, influence, and potential for future growth. Cities are evaluated across five key dimensions:
- Business Activity
- Human Capital
- Information Exchange
- Cultural Experience
- Political Engagement
New metrics introduced this year include digital readiness and human mobility, reflecting shifts in the global operating environment. Cities that adapted well to changes in global trade, geopolitical instability, and digital transformation saw improved scores.
Top 10 cities in the Global Cities Index
London’s GCI Performance
London maintained its second-place ranking overall, continuing to rival New York (1st) across several categories. However, London’s business activity dropped four places to 7th, reflecting increased competition from cities like Paris (2nd), Tokyo (4th), and Beijing (6th). The city’s capital markets remain strong, with London climbing from 11th to 8th in this sector, overtaking major hubs like Shanghai (8th).
In human capital, London retained its 2nd position globally, driven by a strong presence of international students and leading universities, including top-ranked medical institutions. London’s international student population has now surpassed Melbourne, taking the top spot. The city continues to attract top-tier talent, staying ahead of Melbourne (3rd), Tokyo (4th), and Chicago (5th).
London holds the top spot globally in cultural experience, ahead of Paris (2nd) and New York (3rd). With its renowned museums, international sporting events, and diverse culinary scene, the city remains a top destination for international travellers, strengthening its position as a global cultural hub.
However, London’s information exchange performance dropped, retaining its 4th rank but suffering from poor internet speed, where it ranks 97th globally. This has become a significant drawback compared to cities like Singapore (5th), Berlin (9th), and Toronto (10th), which are excelling in digital infrastructure and connectivity.
Brenna Buckstaff, Principal in Kearney’s Global Business Policy Council, commented:
“London continues to stand strong in the Global Cities Index, thanks to its leadership in capital markets and cultural influence. With £63bn pledged at the recent London Investment Summit, it’s clear that both the UK and London are where businesses want to be. But this can’t be taken for granted.
“Cities like San Francisco and Munich are raising the bar in digital infrastructure and governance, while Singapore is growing in business activity. Going forward, the East will continue to grow as a major force in global financial services, so establishing connections early could offer a competitive edge compared to other European cities. With shifting trade and global uncertainty, London could benefit more by broadening its global reach to maintain its competitive edge.”
Background
The GCI assesses how globally engaged cities are across five dimensions: business activity, human capital, information exchange, cultural experience, and political engagement. The GCO, on the other hand, examines how cities are creating the conditions for future status as major global players. This analysis covers four dimensions—personal well-being, economics, innovation, and governance—which are the key determinants of a city’s ability to attract talented human capital, generate economic growth, increase competitiveness, and ensure stability and security.
While the GCI quantifies the current state of urban centers, the GCO is a measure of how these same cities are ensuring that they can retain – or augment – their global city status in the future. The GCO is designed to spotlight not only the well-established leaders, but also those cities that may be best positioned—thanks to strategic investments in future performance—to challenge their supremacy.
