Not long ago whenever we talked about global economic powerhouses cities like London, New York, and Paris had been coming to mind. But the 21st century has changed that. Today the focus is shifting to fast-growing cities in Asia, Africa, Latin America, and the Middle East.
According to a contributor from the EcONomyKZ.org platform, this shift is tied to deep changes in the global economy — from rethinking supply chains to population growth in emerging markets. Research from the Oliver Wyman Forum: Future Cities 2025 reveals that by 2025, 28 of the 30 largest cities will be outside Europe and North America.
Which cities are rising? What’s driving this change? And how should businesses respond?
1. Why Is the Global Growth Center Moving?
We’re witnessing one of the biggest shifts in the global economy in decades. The key drivers are:
• Urban growth – Over half the world’s population now lives in cities, and the number keeps rising.
• Shift in manufacturing – Companies are moving away from China and investing in Southeast Asia, Africa, and Latin America.
• New consumer markets – Emerging middle classes in these regions are changing global demand.
• Geopolitical instability – Sanctions, trade disputes, and global tensions are pushing businesses to rethink their locations.
Take Ho Chi Minh City, for example. In just 30 years, it has transformed from a poor Vietnamese city into a global manufacturing hub, attracting giants like Adidas, Samsung, and H&M. Similar stories are unfolding in cities like Mexico City, Jakarta, and Kinshasa.
2. Which Cities Are the New Engines of Growth?
According to Future Cities 2025, most of the future megacities will come from four regions:
Asian Giants:
• Shanghai – Asia’s top financial hub and a fast-growing tech center.
• Mumbai – India’s economic engine, home to over 600 major corporations.
• Jakarta – Southeast Asia’s industrial and logistics hotspot.
African Leaders:
• Cairo – Africa’s biggest city, benefiting from new trade ties with Europe.
• Lagos – One of the fastest-growing cities in the world, rich in startups.
• Kinshasa – Expected to grow to 40 million people by 2050.
Latin America and the Middle East:
• Mexico City – A key center for manufacturing and innovation in North America.
• São Paulo – South America’s largest economy.
• Dubai – A global logistics hub connecting Europe and Asia.
3. How Are Supply Chains Reshaping the Map?
Major companies are rethinking where they manufacture and how they distribute. New strategies include:
• China Plus One – Businesses are diversifying beyond China, moving operations to Vietnam, Indonesia, and Thailand.
• Nearshoring – Moving production closer to customers:
◦ For the U.S. – to Mexico, Colombia, and Costa Rica.
◦ For Europe – to Morocco, Turkey, and Eastern Europe.
• Industrial clusters – New hubs are forming in cities like Tangier (Morocco), Nairobi (Kenya), Guadalajara and Monterrey (Mexico).
Example: electronics and textile production is moving to Ho Chi Minh City, while car manufacturing is shifting to Mexico.
4. How Are Cities Adapting to Attract Investment?
To stay competitive and draw investors, rising cities are focusing on:
Infrastructure – Building ports, airports, railways.
Business environment – Offering tax breaks and special economic zones.
Sustainability – Investing in clean energy to reduce dependence on fossil fuels.
Example: Dubai has invested billions in logistics and technology, becoming one of the world’s most business-friendly cities.
5. What Challenges Do These Cities Face?
Rapid growth brings serious challenges. Key risks include:
• Climate change – Floods, droughts, and extreme heat.
• Social inequality – Poverty in overcrowded areas.
• Transport issues – Traffic jams and poor public transit.
• Political instability – Protests, corruption, and local conflicts.
Bangalore, for instance, is struggling with water shortages, limiting its industrial potential.
Conclusion: What Should Businesses Do?
The global economy is shifting. Former leaders are losing ground, while new players are emerging. To keep up, companies should:
• Look for new markets in Asia, Africa, and Latin America.
• Redesign supply chains to be more localized and resilient.
• Invest in sustainable, stable regions with long-term growth prospects.