Santiago’s post-recession economic recovery among world’s best

The report ranks the Chilean capital fifth on the list of 150 metropolitan areas in the “recovery period” of 2009 and 2010.

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Santiago is ranked fifth in a list of global cities making the best recovery from the global economic crisis, a recent report says.

Ten of the top 50 cities are from Latin America with Santiago leading the way along with Lima, ranked third, according to the report by the Brookings Research Institute in Washington, together with the London School of Economics and Political Science (LSE) and Deutsche Bank Research.

The study ranked 150 cities in 53 countries, representing 46 percent of global GDP. It looked at cities’ performances between 1993 and 2007, the recessionary period between 2007 and 2010 and the period from 2009 and 2010.

Santiago’s place in the top five saw it jump 33 places from 41st pre-recession.

The report says it focuses on metro areas because they form the bases for national and international economies.

Practically every city was affected during the late 2000s, when global economic output, which had grown at an annual rate of 3.2 percent from 1993 to 2007, shrunk 2 percent, according to the International Monetary Fund.

However, the report noted that several global metropolitan areas witnessed more of a “slow-down” than a “Great Recession”.

Buenos Aires, Bogotá and three Brazilian cities were also ranked among the top 30 metropolitan areas.

Many Latin American metropolitan areas asserted themselves economically, with seven cities including Lima (third) and Santiago (fifth) among the top 30, according to the report.

It said that being in the top 30 is an important indicator of economic health: “All 30 of the top-performing metros experienced both income and employment growth in 2009–2010, reflecting in part the increased flow of capital to emerging economies as the worldwide recovery began.”

Chile’s predicted growth in 2010 is five percent, according to the International Monetary Fund. The IMF predicts 6 per cent growth for the country in 2011.

Worldwide, Istanbul was the top-ranked metropolitan area during the recovery period, posting significant gains in both employment and income, a strong bounce-back from ranking 143rd during the recession period.

Dublin in Ireland was ranked last on the list, just behind Dubai in the United Arab Emirates.

This post is also available in Spanish