London has been ranked the best city in the world after making a strong economic comeback since the pandemic, according to a new study from a Japanese research body.
The latest Global Power City Index (GPCI) rankings for 2023 from the Mori Memorial Foundation’s Institute for Urban Strategies examined changes in global transportation, the cost of living, and workstyles.
The ranking of global cities placed London first, followed by New York, Tokyo, Paris, and Singapore.
"Strong comeback"
The researchers said that “after seeing its scores decline during the pandemic”, the UK’s capital city made a “strong comeback this year” in the GPCI index, as shown by certain economic and cultural indicators.
This was indicated by the city’s renewed wage levels, high number of foreign visitors, and volume of air passengers, the Institute said.
Even after the pandemic, London’s international air connections “remained strong”, the researchers said.
However, where the city’s scores declined was in the availability of skilled human resources, urban cleanliness, and average driving speeds.
Dubai rose to eighth place, its highest ranking ever in the Institute’s analysis, due to improved scores in economic, cultural, living, and accessibility indicators.
The United Arab Emirates capital scored highly in terms of the number of foreign residents and luxury hotel rooms, relatively low unemployment rate, and workstyle flexibility, the Institute said.
Shanghai, meanwhile, fell from tenth to fifteenth place due to prolonged travel restrictions.
Global financial centre
London also ranked as the top global financial centre due to foreign exchange turnover and interest rate derivatives turnover, which researchers said were indications of the city’s distinctive strengths. It also ranked second in the number of highly skilled personnel within the finance sector.
The Institute said that London and New York also lead the global financial sector, followed by four Asian cities, Tokyo, Beijing, Shanghai, and Hong Kong.
“The rapid expansion and internationalization of the global financial industry is intensifying competition among major cities,” the Institute’s researchers said.