Mori Memorial Foundation’s Global Power City Index 2025 Sees City Rankings Shift Due to Tourism Gains in East Asia and Inflationary Pressures in the West

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TOKYO — The Mori Memorial Foundation’s Institute for Urban Strategies, a research body established by Mori Building, Tokyo’s leading urban landscape developer, today published its annual Global Power City Index (GPCI) 2025, a report evaluating the urban competitiveness of 48 major cities worldwide. The report also includes the GPCI–Financial Centers index, an assessment of cities as international financial centers, and the new GPCI–Startup Ecosystems index, which assesses the competitiveness of startup environments.

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This year’s report highlights the remarkable rise of East Asian cities and the stagnation of several Western cities, showing how global challenges, such as geopolitical tensions and regional disparities in inflation, are greatly impacting the performance of major cities worldwide.

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The results reflect positive trends in East Asia, including Tokyo’s rise to 2nd place, its highest position since the index began, supported by improvements in Livability and Cultural Interaction urban functions. Several other East Asian cities also achieved notable advancements, including Seoul solidifying its position in 6th, Shanghai climbing to 8th, Beijing rising from 16th to 12th and Taipei advancing from 30th to 24th. Overall, East Asian cities benefited from enhanced accessibility, growing tourism infrastructure and cultural appeal.

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In contrast, many Western cities faced rising inflation and declining international connectivity. London retained its top spot for the 14th consecutive year, though its overall score declined slightly. New York dropped to 3rd, while Paris and Amsterdam struggled with affordability and cultural interaction due to inflationary pressures and weakened performance in other key areas.

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These results suggest that global challenges such as inflation and shifting tourism dynamics are reshaping urban competitiveness, as East Asian cities leverage growth opportunities through tourism and infrastructure investment, while Western cities grapple with economic pressures and the consequences of global disruptions.

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The GPCI assesses the competitiveness of cities using 72 indicators spread across six core urban functions: Economy, R&D, Cultural Interaction, Livability, Environment and Accessibility.

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Highlights

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London (1st)

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London retained its top position thanks to strong performance in indicators such as “Variety of Workplace Options,” “Number of International Students,” “World’s Top Universities” and “Number of Startups.” It also improved in “Workstyle Flexibility” and ranked 1st in “Urban Greenery.” However, slight declines in “Tourist Attractions,” “Nightlife Options” and “Number of Retail Shops” led to a slight drop in London’s overall score.

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Tokyo (2nd)

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Tokyo rose to 2nd place for the first time, following nine consecutive years in 3rd, driven by a substantial improvement in its overall score. Although Tokyo’s Economy ranking declined, it excelled in Livability (1st) and Cultural Interaction (2nd), including 1st in “Nightlife Options” and 2nd in “Tourist Attractions.” Tokyo also made significant progress in its Environment ranking, rising from 18th to 7th, including 2nd in the newly added “Corporate Sustainability Assessment” indicator.

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New York (3rd)

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New York slipped to 3rd, down from 2nd for the first time since 2012, after experiencing the largest decline in overall score among the 48 cities. The city faced challenges in Livability, ranking last in “Price Level,” and saw declines in Environment. Scores for “Tourist Attractions” and “Nightlife Options” in Cultural Interaction also dropped slightly. Despite these challenges, New York continues to lead in Economy and R&D, maintaining top rankings through its unrivaled performance in “Stock Market Capitalization” and “R&D Expenditure.”

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Paris (4th)

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Paris remained in 4th, with a slightly higher score supported by the 2024 Paris Olympics and its status as a leading global tourist destination. The city excelled in Accessibility, surpassing New York to claim 2nd place. However, like other Western cities facing inflationary pressures, Paris experienced challenges in indicators such as “Price Level,” which dropped the city to 2nd place in Livability.

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Singapore (5th)

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Singapore retained its 5th place ranking, supported by improvements in Economy, including a higher score in “Variety of Workplace Options.” In Environment, the city’s “Biodiversity” and “Urban Greenery” rankings were the highest among the GPCI’s overall top 10 cities. However, global inflationary pressures led to a sharp decline in “Price Level,” causing Singapore’s Livability ranking to fall to 31st place.

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Seoul (6th)

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Seoul grew its score the most of any top 10 city to edge closer to Singapore. It was 5th again in R&D, placing 2nd in “Number of Patents,” 3rd in “Number of Researchers” and among the top 10 in “World’s Top Universities.” In Environment, Seoul ranked 4th in “Corporate Sustainability Assessment.” In Cultural Interaction, Seoul improved in “Number of Foreign Visitors,” “Tourist Attractions,” “Nightlife Options” and “Attractiveness of Dining Options,” reflecting strong visitor amenities.

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Amsterdam (7th)

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Amsterdam retained its 7th place ranking, supported by improvements in “Workstyle Flexibility” under the Livability function and a 10th place ranking in “Biodiversity” in the Environment function. However, challenges for Amsterdam included a decline in “Price Level” within Livability, as well as lower scores for “Tourist Attractions” and “Nightlife Options” in Cultural Interaction.

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Shanghai (8th)

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Shanghai rose three places to 8th, boosted by strong R&D scores, including in “Number of Researchers” and “World’s Top Universities.” It made significant progress in Cultural Interaction, improving its tourism appeal with more highly evaluated attractions, shopping and dining experiences. In Accessibility, Shanghai rose three places to 4th due to improvements in “Number of Air passengers,” “Number of Arrival and Departures at Airports” and “Travel Time to Airports.”