By Dave Gatton
February 12, 2007

U.S. metros continued their dominance of the national economy by contributing over 90 percent, or $3 trillion, of the nation’s economic growth this decade (2000-2006), according to a new report released by The U.S. Conference of Mayors Council for the New American City at its Winter meeting January 25.

The report, entitled “U.S. Metro Economies: Engines of America’s Growth,” indicates that the nation’s 361 metros generated an astounding 86.7 percent of gross domestic product (GDP) in 2006, up from 86 percent in 2000. By 2036, the report forecasts that metro areas will produce 87.9 percent of the value of all goods and services in the U.S. Global Insight Inc, an internationally known economic forecasting firm prepared the report.

In 2006 U.S. metros accounted for 89.9 percent, or $5.5 trillion, of the nation’s labor income, and 85.7 percent of national employment representing 116.3 million jobs.

“This report documents the continued and growing importance of city economies as engines of our national growth,” said Conference of Mayors President Trenton Mayor Douglas Palmer.

The New York City Metro area again led the nation in economic output in 2005, generating $952.6 billion, with a projected real Gross Metropolitan Product (GMP) growth rate of 3.0 percent for 2006 and 2.3 percent in 2007. The Los Angeles/Long Beach metro is the second largest in the country in terms of output, with a 2005 GMP of $604.8 billion, and an expected real GMP growth rate of 3.8 percent in 2006 and 2.0 percent for 2007. Chicago again claims the slot of third largest metro with a 2005 GMP of $422 billion and real GMP growth of 2.8 percent in 2006 and 2.1 percent in 2007.

According to the report, when U.S. metros are ranked among countries, 42 of the world’s 100 largest economies are U.S. metros. New York City ranks as the 10th largest in the world, followed by Los Angeles/Long Beach and Chicago as 18th and 19th respectively.

“Economically our nation functions as a conglomeration of metro economies that must compete on the global stage. The era of city versus suburb is fast becoming obsolete,” said Council for the New American City Chair Detroit Mayor Kwame M. Kilpatrick. “Our competition is Tokyo, Shanghai, Berlin, London,” the mayor added. “To compete globally, cities will need to forge new partnerships at the federal and state levels. It is essential for the nation as a whole.”

The report, its key findings, and charts are available on usmayors.org.