25 Aug 2020
Posted in Business Fundamentals
Beijing and Tokyo public company revenue surged ahead of London, Paris and all major US metropolitans in 2019
Beijing and Tokyo saw a major lead over European and US-based cities in GlobalData’s 2019 ranking of top 25 global cities by GDP, with Beijing seeing $5,643bn revenue – three times larger than London, which is the first non-APAC city in the ranking by revenue. Although Beijing was the largest revenue contributor – and third largest in terms of the number of companies – it lagged behind Washington, Seattle and Paris in terms of average revenue per company in 2019, says GlobalData, a leading data and analytics company.
Parth Vala, Company Profiles Analyst at GlobalData, comments: “Washington reported average revenue of US$14.7bn per company, followed by Seattle (US$11.5bn), Paris (US$8.3bn) and Beijing (US$8.3bn). Most cities in the top 25 were from the US, representing 13 of the top 25, followed by China with five.”
There were 22 cities that reported growth in their aggregate revenues in 2019 over the previous year. However, the cities whose companies performed particularly well, with an aggregate revenue growth of over 10%, were London and Seattle metropolitan. Companies in Chicago, Houston metropolitans and Moscow reported very marginal aggregate revenue decline.
Parth continues: “The revenue of companies in London grew on account of improved performance of financial services sectors such as banking and payments; insurance; and investment banking and services, whereas Seattle metropolitan benefited from improved performance of companies in pharmaceuticals, medical equipment, insurance, banking and payments and consumer sectors.”
The top 25 cities were home to around 8,500 companies and 25% of these were based in Japan, followed by China (22%), Hong Kong (17%), the US (16%), Singapore (8%), the UK (7%), France (2%), Russia (1%) and Mexico (1%).
The companies headquartered in the top 25 cities accounted for 37.7% of the aggregate revenue of the total sample size. The combined revenue of these companies increased 6.3% in 2019, as compared to that in the previous year.
The effects of COVID-19 forced Singapore and the UK to officially enter a recession in Q2 2020, while the US continues to be the center point of the pandemic. As China’s geopolitical tensions with the US, Hong Kong, Japan and many other countries persist, many global companies are looking for an alternative to China in regard to their supply chain, which will involve a great deal of cost and restructuring. Since China is primarily an export-driven economy, businesses leaving China, however fractional they might be, could render the country to lose a great deal.