How diversified is your city?
* GCC nations now racing to diversity economy from oil
* World’s most diversified city is Guayaquil in Ecuador
* Least diversified urban economy is Kuwait City in Kuwait
Economic diversification has been the keyword of 2016 and clearly continues to be buzzword for this year as well. Drawing an example from the region, it is evident that heavy reliance on one sector for a city’s economy has proven to be a bad investment model.
Many GCC countries have been heavily relying on oil export revenues to support the economy and are now in a race to diversify their income sources after oil prices plunged for over two years.
But, compared to the world, how is the region faring in its diversification efforts? Are you living in a city you can consider to be diversified?
The world’s most diversified city has been identified to be Guayaquil in Ecuador, according to the Herfindahl-Hirschman Index, which measures the size of firms in relation to the industry and an indicator of the amount of competition among them, reported Euromonitor International.
According to the index, the GDP of a diversified economy is balanced across a variety of sectors, without any heavy reliance on one particular economic sector.
Meanwhile, the least diversified urban economy, according to the index, was Kuwait City in Kuwait, which heavily relies on manufacturing and mining sectors.
The top 10 most diversified cities:
- Guayaquil, Ecuador
- Quito, Ecuador
- Buenos Aires, Argentina
- San Jose, Costa Rica
- Kolkata, India
- Ankara, Turkey
- Rotterdam, Netherlands
- Osaka, Japan
- Bucharest, Romania
- Nagoya, Japan
The top 10 least diversified cities:
- Kuwait City, Kuwait
- Baku, Azerbaijan
- Abu Dhabi, United Arab Emirates
- Doha, Qatar
- Almaty, Kazakhstan
- Lagos, Nigeria
- Washington, United States
- New York, United States
- Karachi, Pakistan
- London, United Kingdom