East Asian Cities Soar in Global Power City Index 2025, Shaping the Future of Sustainability and Innovation

Published on December 17, 2025

The Mori Memorial Foundation’s Institute for Urban Strategies, a leading research body in urban development, has released its much-anticipated Global Power City Index (GPCI) 2025. This report evaluates the urban competitiveness of 48 major cities across the globe, providing an in-depth assessment of factors such as economy, livability, cultural interaction, environment, and accessibility. For the first time, the index has introduced a new metric — the GPCI-Startup Ecosystems Index, which highlights the growing importance of cities as global startup hubs.

Key Findings: East Asia Surges, Western Cities Face Challenges

The 2025 GPCI reveals a striking shift in the global urban landscape, with East Asian cities gaining ground while many Western cities have shown stagnation or decline. The report suggests that ongoing geopolitical tensions, inflationary pressures, and regional disparities in economic growth have played significant roles in reshaping the performance of major cities worldwide.

One of the most notable developments in this year’s report is Tokyo’s rise to second place — its highest position since the index’s inception. This increase was largely driven by improvements in livability and cultural interaction, with Tokyo excelling in areas like nightlife options and tourist attractions. The city’s remarkable performance in environmental sustainability also contributed to its improved ranking, as it moved from 18th to 7th in the global standings.

Other East Asian cities also experienced significant improvements, including Seoul, which solidified its position in 6th place, and Shanghai, which climbed three places to 8th. Beijing made a noteworthy leap, moving from 16th to 12th, while Taipei saw an impressive rise, jumping from 30th to 24th.

In contrast, many Western cities, including London, New York, Paris, and Amsterdam, faced challenges related to inflation, affordability, and a decline in cultural interaction. Despite maintaining its position as the top-ranked city for the 14th consecutive year, London saw a slight decrease in its overall score. The cost of living, which has increased due to inflation, was particularly impactful, with London’s rankings in areas like tourist attractions and nightlife options suffering from rising prices and reduced international connectivity.

City Rankings: A Breakdown of Top Performers

• London retained its position at the top of the index, but it did experience slight declines in key categories such as tourist attractions, nightlife options, and retail shops. The city excelled in workplace variety, international students, and the number of startups, all of which helped maintain its high ranking.
• Tokyo’s performance was exceptional, especially in livability and cultural interaction, where it ranked first and second, respectively. Although its economy ranking declined, Tokyo’s improved environmental sustainability measures, including corporate sustainability, allowed it to rise significantly in the rankings.
• New York, which had previously been ranked second, dropped to third. The city’s livability score took a hit, with price levels and a declining environment ranking being notable factors. However, New York still led in economy and R&D, driven by its strong performance in stock market capitalization and R&D expenditure.
• Paris remained in 4th place but faced similar challenges as New York, with inflation impacting its price level and contributing to declines in livability. However, it benefited from its strong position in accessibility, where it surpassed New York to claim second place.
• Singapore held its position in 5th place, with improvements in its economy and environment, although its livability ranking dropped due to inflation.
• Seoul made significant strides, rising in cultural interaction and environmental sustainability. It also improved in tourism amenities, with stronger performances in foreign visitors and dining options, which contributed to its position in 6th place.
• Amsterdam remained in 7th but faced challenges related to price level and tourist attractions, which resulted in a slight dip in its rankings.
• Shanghai made a notable advancement to 8th place, driven by its improved performance in R&D, cultural interaction, and accessibility, with particular emphasis on increased air traffic and tourism amenities.
• Dubai dropped one rank to 9th but showed improvements in its economy and cultural interaction rankings, particularly with a higher position in international conferences and nightlife options.
• Berlin dropped to 10th but experienced improvements in livability, particularly in workstyle flexibility and cultural events, which helped offset declines in its environment ranking.

The New GPCI-Startup Ecosystems Index

This year’s report also introduced the GPCI-Startup Ecosystems index, which assesses cities based on their ability to foster startups and expand into global markets. The index evaluates cities on entrepreneurial talent, environment, dynamism, and scale-up opportunities, among other factors.

• Silicon Valley remained the clear leader, dominating four of the five key indicators and ranking first in entrepreneurship dynamism and scale-up dynamism.
• New York came in second, with strong rankings in entrepreneurial dynamism and scale-up environment.
• London finished third, benefiting from a balanced performance across all indicators, including strong entrepreneurial environment and scale-up support.

Global Competitiveness and Urban Trends

The GPCI 2025 report paints a clear picture of how global challenges, such as inflation and geopolitical tensions, are reshaping urban competitiveness. As East Asian cities continue to invest in infrastructure, culture, and accessibility, they are positioning themselves as powerful contenders on the global stage. Meanwhile, Western cities, particularly in Europe and North America, are grappling with economic pressures that are affecting their overall performance.

This shift in urban competitiveness signals the growing importance of investment in tourism infrastructure, cultural appeal, and sustainability in shaping the future of global cities. As cities like Tokyo, Seoul, and Shanghai rise in the rankings, they underscore the importance of strategic planning and adaptability in the face of global disruptions.

Conclusion: Evolving Global Urban Landscape

The results of the Global Power City Index 2025 highlight the ongoing changes in global urban competitiveness. East Asian cities are rapidly rising as global leaders in cultural, economic, and environmental sustainability, while Western cities are facing growing challenges. As the global landscape continues to shift, cities worldwide must adapt to the changing dynamics of tourism, economic growth, and sustainability.

The introduction of the GPCI-Startup Ecosystems Index further emphasizes the growing role of entrepreneurship and innovation in urban development. As cities continue to evolve and grow, their ability to foster dynamic, sustainable ecosystems will be key to their future success.