July 1, 2002

U.S. Conference of Mayors President Boston Mayor Thomas M. Menino and Detroit Mayor Kwame M. Kilpatrick released on June 15, a national economic report showing that U.S. metro areas are the major driving force behind economic growth in the United States.

Menino introduced Kilpatrick to issue the report at a plenary session of the 70th Annual Conference of Mayors at the Monona Terrace Convention Center in Madison, WI. Kilpatrick is the new chair of the Conference of Mayors Council for Investment in the New American City, which jointly issued the report with the Conference.

Kilpatrick told the mayors and members of the Conference's Mayors Business Council that the fifth Annual U.S. Metro Economies Report will some day be regarded as equally important as the issuance of Gross Domestic Product (GDP). The report calculates the Gross Metropolitan Product (GMP) numbers for the nation's 319 metro areas, which measures their economic output of goods and services. It is the only such report in the nation.

In 2001, according to the report, U.S. metro areas accounted for 86 percent of the nation's economic growth and 98 percent of new job creation. Overall, 269 metro areas showed some growth in the recession year, and 135 grew faster than the national average of 2.2 percent real growth.

Over the last decade, metro economies grew economically an astounding $3.9 billion dollars, representing 86 percent of the nation's economic growth in a decade of historic prosperity.

"This report demonstrates clearly the vital role of American metro areas in the national economy," said Mayor Menino. "Metropolitan areas are not just population centers. They are also our centers for jobs and economic activity. Therefore, as our cities go, so goes our nation."

Boston ranked as the nation's fourth largest metro area, with $256 billion of output. Compared to nations, Boston's economy is the 22nd largest in the world, up from its ranking last year of 23rd.

"Even in a tough recession year, the impact of U.S. metro economies was still strong and impressive," Kilpatrick said. Detroit ranked as the 10th largest U.S. metro economy, with a GMP of nearly 160 billion.

Over all, U.S. metro areas contributed over 85 percent of the nation's gross domestic product, a figure that is expected to grow over the next 25 years.

Kilpatrick told mayors that the report documented the new role cities must play in the global economy. For example, if U.S. metro areas were nations, 48 of the world's largest economies would be U.S. metro areas. Detroit ranks as the 37 largest economy in the world, larger than Turkey or Venezuela.

"Our U.S. metro economies are truly global economies and we must, as mayors, begin to re-position our thinking and responsibilities to the world in light of this new reality," he said.

The report also addresses the role metro areas play in state economies. It documents that Detroit Metro contributes 47 percent of the State of Michigan's economy. In aggregate, metro areas in Michigan account for 85 percent of the State's total economic out put.

Despite a recession year and the 9-11 terrorist attacks, New York remained the number one metro area in the U.S., producing over $461 billion of goods and services, growing 2.1 percent in inflation adjusted dollars.

In response to the report and New York's numbers, Mayor Michael Bloomberg said, "New York City demonstrates the strength and tenacity of our nation's cities. Our cities are the economic engines of our country and their growth and success helps all Americans."

Kilpatrick challenged the mayors to use the information to become more powerful in representing urban interest before Congress and state legislatures.