Our latest LaSalle European Cities Growth Index (ECGI) ranks European cities with the strongest economic prospects based on data inputs of economic growth, human capital, business risk and – for the first time – extreme heat.
The 2023 edition highlights the steady strong positions of both London and Paris, which are set to account for more growth than Europe’s next nine top-ranked cities combined. Interestingly, Paris has overtaken London as the top destination for venture capital funding for the first time since LaSalle began tracking this data in 2006, receiving particularly elevated levels of investment into its technology sector.
Nordic cities appear to have an increasing advantage due to demographic trends, a skilled workforce and world-leading pharma, industrial tech and creative industries; they account for a quarter of the top 20 cities. German cities have continued to perform strongly in the index despite slow population growth. On the other hand, Rome and other Italian cities’ rankings are most negatively impacted after a new factor accounting for extreme heat days was added to the ECGI this year.
Elsewhere, Prague and Warsaw have been identified as having promising growth prospects as more expats return and high-skilled workers remain, with this “brain gain” leading them to their highest scores since the global financial crisis. The index also reflects that Warsaw is becoming an attractive place for employment in the technology sector and Prague is forecast to benefit from a jobs boom.
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