Capital Cities

The Capital's Economic Power

Have you ever wondered just how important a capital city is to a country's economy? New research from the Germany-based Institut der deutschen Wirtschaft Köln reveals that in Europe at least, capital cities form the beating heart of most economies. Greece and Slovakia are notable examples. If Athens and Bratislava were removed from both countries, GDP per inhabitant would drop 19.8 and 18.9 percent respectively. France without Paris would also see productivity fall 14.8 percent while the UK minus London would bring about an 11.1 percent fall in productivity per inhabitant.

Germany is an exception, however. Even though Berlin has been described as "poor but sexy" by its former mayor, the German capital is struggling with high unemployment, poverty, debt, outdated infrastructure and an education system in need of an overhaul. If Berlin was removed from Germany, GDP per inhabitant would actually go up 0.2 percent.

Description

This chart shows the reduction in GDP per inhabitant if the capital city was removed (2015).

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Total population of the European Union (EU) 2023
European Union and Europe: organic retail sales value from 2004 to 2023
Respondents' image of the European Union from 2006 to 2024
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GDP growth rate forecasts in European Union 2025
GDP of the European Union 2011-2023
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Nominal wage and salary growth in the European Union and Euro area 2009-2024

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