Economic growth in the developing world far outpaced North America and Western Europe in the last year, according to a new report.
But the author of the report from a U.S.-based think tank says Canadian cities are better positioned for a rebound compared to their counterparts in the West.
Released Wednesday by the Brookings Institution, the report analyzed GDP and employment data of the world's 200 largest metropolitan economies for 2010 to 2011.
It found that 95 per cent of cities that experienced the slowest growth were in North America, Western Europe and Japan, while 90 per cent of the fast-growing economies were located in China, India, Southeast Asia, Latin America and Eastern Europe.
Of the seven Canadian cities included in the report, Calgary was tops at number 51 on strong income and employment numbers.
Growth in the developing world is often perceived as a threat in the traditional powerhouse economies of Western Europe and North America, said Alan Berube of the Brookings Institution's Metropolitan Policy Program.
But as the emerging economies get wealthier and more productive, he said, new trade and investment opportunities follow.
"What we need to do is look at those places in China, in India, in Southeast Asia, in Latin America as growth opportunities. Satisfy the growing demand coming out of those places, and looking at them as sources of investment in our countries," Berube told CTV News Channel.
"Canadians are probably a little bit better at this than the United States people are, we don't get out very much. We have a very large internal market in the United States, and have been satisfied with that for far too long. I don't think we can count on our own domestic consumers to really power a sustainable recovery and do need to start looking abroad much more than we have in the past."
The report pins each country's and global economic growth on the financial health of urban centres, which often drive the majority of economic activity.
While the 200 metropolitan economies included in the report account for only 14 per cent of the world's population and employment, they generate more than 48 per cent of global GDP.
According to the report, the top city for economic growth was Shanghai, where income grew by 9.8 per cent and employment grew by 5.8 per cent. It was followed by:
- Riyadh, Saudi Arabia
- Jiddah, Saudi Arabia
- Izmir, Turkey
- Hangzhou, China
Calgary was ranked 51st on a 1.5 per cent increase in income and a 2.7 per cent boost in employment. Six other Canadian cities were included in the list. Following Calgary was Edmonton at 60, Vancouver at 76, Toronto at 79, Hamilton at 83, Ottawa at 109, Montreal at 120.
While Montrealers may be disheartened to see their city last among Canadian urban centres, Berube said it was actually the only North American city to surpass its pre-recession levels of income and employment.
"It didn't grow very fast over the last year, but by the same token it wasn't hurt as hard by the recession as a lot of other North American cities were," he said.
Like other commodity-based economies in the rankings, Calgary and Edmonton fared well on the strength of the energy sector, Berube said.
Despite fears about slow growth among North American and Western European cities, Berube said they still enjoy a much higher standard of living and are generally wealthier and more productive than their counterparts in the growing and developing world.
However, job growth remains a key concern.
"I think if we want to grow jobs and want to maintain a competitive edge and a high standard of living here, what we need to do is look at those places in China, in India, in Southeast Asia, in Latin America as growth opportunities," he said.
Tops among the lowest-performing was Athens, the epicenter of the European debt crisis. Other cities from troubled European economies appeared at the bottom of the list, including Lisbon, Dublin, Naples and Madrid.
