Bangkok ranks last in economic performance in a new survey of 300 world cities by bank JPMorgan Chase and an American think tank.
A worker paints under war veteran statues during a renovation at Victory Monument in Bangkok, Jan 19. Bangkok ranks last in economic performance in a new survey of 300 world cities by bank JPMorgan Chase and an American think tank. (EPA photo)
Its economy "wrecked" by years of political strife, the capital saw real gross domestic product per capital fall 0.5% from 2013-14 and employment growth shrink 1.7% during the same time, the report by the bank and the Brookings Institution said. Bangkok ranks 259th out of 300 cities for economic performance between 2009 and 2014.
Thailand's dismal performance on the global ranking contrasted sharply with cities throughout the developing world - especially China - which dominated the top of the annual economic rankings. Macau, the Chinese territory known for casino gambling, outperformed the rest of the world to come in at No 1.
Macau has enjoyed a tourism boom, with gamblers coming to bet at more than 30 casinos, including the Venetian Macau, the world's largest.
Cities in wealthy, developed countries tended to lag behind. Though most of the cities surveyed around the world have recovered from the Great Recession, 65% of European and 57% of North American cities have not, according to the study, which ranks cities by growth in employment and in economic output per person.
Preparing for AEC
A construction site near the Malaysia landmark, Petronas twin tower (centre) in Kuala Lumpur, Malaysia, Jan 20. The Malaysian capital placed 19th on a economic-performance ranking of 300 cities by JPMorgan Chase and the Brookings Institution, posting 4.1% per-capita GDP growth from 2013-14 and 3.4% employment growth. (EPA photo)
The 10-country Association of Southeast Asian Nations region put in a respectable showing on the two organisations' rankings. Malaysia put two cities in the top 50 - Kuala Lumpur at No 19 and George Town at No 47 - while Ho Chi Minh City (23) and Jakarta (34) both outpacing Singapore, which came in 61st. Manila was the next Asean country to rank at 139th.
Bangkok brought up the rear at No 300, the only one of the Asean nations to post negative per-capita GDP and employment growth since 2013.
Inside China
Twenty-seven of the 50 top-performing cities were Chinese. Increasingly, strong growth occurred in the traditionally underdeveloped cities of China's interior, rather than its booming coastal cities. Land-locked Changsha, for instance, enjoyed economic growth per person of 8.6% last year and wound up No 15 in the overall rankings.
The coastal manufacturing powerhouse of Dongguan, next door to Hong Kong, registered per-capita economic growth of just 5.2% (unimpressive by Chinese standards) and finished No 70. Companies have begun to move inland as the cost of labour and land rises on the Chinese coast. And the Chinese government has invested heavily on infrastructure in the interior.
Big differences
Joseph Parilla, a Brookings research analyst who co-wrote the report, said he was surprised by the "incredible differentiation within what are considered monolithic economic blocs." Latin American cities, for instance, mostly sputtered. But Medellin, Colombia, and Lima, Peru, both broke into the top 50.
Cities in wealthy countries tended to perform poorly. But US and British cities showed improvement. Three US cities - Austin and Houston, Texas, and Raleigh, North Carolina - cracked the top 50. In the United Kingdom, London came in No 26, Manchester No 60.
Thai job seekers apply for jobs during a job fair at the Ministry of Labour in Bangkok Jan 19. Bangkok posted negative employment growth of 1.7% during 2013-14, helping it place last on a new survey of economic performance in 300 world cities. (EPA photo)
The United States and Britain have begun to pick up economic momentum five years after the recession ended.
"In developed economies like North America and western Europe, cities like London and Houston are flying high, while others like Rotterdam and Montreal are struggling," Mr Parilla said.
Commodities boom
The 18 cities worldwide that specialized in producing commodities such as oil registered the highest rates of growth in economic output per person (2.6%) and employment (1.9%).
"The recent rise in oil and gas production in North America partly explains the success of metropolitan areas like Calgary, Denver, Houston, and Tulsa, which are epicentres of the region's shale revolution," the report said.
Next year's rankings may be different. Oil prices have plunged to less than $48 a barrel from $107 a barrel last June, jeopardizing the prospects of cities that had been riding the energy boom.
Turkish delight
Four Turkish cities made the top 10: Izmir, Istanbul, Bursa and Ankara. Turkish cities boomed last year despite political unrest. "If you look at world headlines, Turkey is not in the news for its economic success, but it probably should be," Brookings' Mr Parilla says. "It has pretty solid macroeconomic policies."
Turkey benefits from its location at the boundary between Europe and Asia and from heavy investment in roads and other infrastructure projects, which creates jobs over the short term and is likely to make the economy more efficient over the long term.
