National Association of Counties * Washington, D.C.            Vol. 31, No. 21 * November 8, 1999

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Report finds metro areas drive robust U.S. economy

Analysis shows urban counties outpace states, even nations

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Report finds metro areas drive robust U.S. economy

New analysis shows metro areas outpace states, even nations

Counties and cities within metropolitan areas are the focal points of America’s current and future economic prosperity, according to a report released last week by NACo and the U.S. Conference of Mayors (USCM).

Compiled by Standard & Poor’s DRI, the report documents the Gross Metropolitan Product (GMP) of the nation’s 317 largest metro areas, and shows improved economic vitality for the nation’s metro regions. The GMP is a concept analogous to the Gross Domestic Product, the commonly accepted measure nations use to calculate the total annual value of goods and services they have produced.

According to NACo President and Howard County Council (Md.) Chairman C. Vernon Gray, “This report tells a story of a robust national economy driven by metro economic engines. It describes the scope of metro areas, their vital contribution to the nation’s economy, the level of income creation by metro areas, generation of new industries by metro areas, and the relationship between metro areas and the nation’s overall economic growth.”

In a statement made before the release of the report, USCM President and Denver Mayor Wellington Webb said, “the new data we are releasing makes clear that metropolitan economies are the engines of America’s growth and driving the current economic boom. Metro regions are growing, producing more, and creating unprecedented levels of employment.”

As an example, Webb cited the current levels of growth in the Denver area, where the economy last year grew by an astounding 10.6 percent (a rate more than twice the national average). At $72.5 billion in GMP, Denver ranks as the 63rd largest economy in the world, shooting up six spots from its ranking of 69 last year.

Not surprisingly, metro economies often exceed states and nations.

For example, the New York City economy produces more than Australia, and the Fulton County/Atlanta metro area economy produces more than Finland. Regarding comparisons with states, the Erie County/Buffalo metro economy exceeds Hawaii’s, and the New Haven metro economy exceeds Nevada’s.

The study also finds that metro economies ignore state and local boundaries, and that state and local boundaries are increasingly irrelevant to economic growth. Many metro economies are located in two or more states and encompass many communities.

City and county leaders believe the new data demonstrate that public policies and economic planning must focus on the needs of metro regions, rather than artificial political boundaries, said Wayne Curry, Prince George’s County (Md.) executive and chair of NACo’s Large Urban County Caucus.

For instance, of the nation’s 317 metro areas, 31 are contained in two states, while another four are contained in three states.

This is the second year that NACo and USCM have surveyed major metropolitan areas in their report “U.S. Metro Economies: The Engine of America’s Growth.”

NACo, USCM Gross Metropolitan Product Report Findings U. S. metro areas account for 84 percent of the nation’s gross domestic product. Metro areas are now generating 84 percent of the nation’s employment and 88 percent of the nation’s income. Metro economies are responsible for 89 percent or more than $2 trillion, of the nation’s economic growth from 1992 to 1998. The report also ranks U. S. metro areas relative to states and national economies around the world. Among the findings: Since last year, 38 of the top 40 metro economies in the country improved their world rankings. For example, Cook County/Chicago moved from 21st to 20th, Washington, D.C. from 30th to 28th, and Dallas County/Dallas moved from 42nd to 37th. If city/county metro economies were ranked with nations, 47 of the world’s largest 100 economies would be U.S. metro areas, and The GMP of the 10 largest U.S. metro areas exceeds the combined output of 31 states.