New York is the world’s top financial centre according to the latest Global Financial Centres Index (GFCI 26) by Z/Yen Partners and the China Development Institute (CDI).
The GFCI receives considerable attention from the global financial community, serving as a valuable reference for policy and investment decisions.
The ranking is based on 134 instrumental factors, including quantitative measures provided by the World Bank, The Economist Intelligence Unit, the OECD, and the United Nations.
New York retains its first place in the index, extending its lead over London from seven to 17 points.
Trade wars, geopolitical unrest, and Brexit are introducing significant adjustments to medium-term perceptions, the report said.
“Competition at the top of the GFCI is intensifying. London is in a ‘slipping second’ position globally and a ‘slipping first’ in Europe amidst high volatility emanating from policy uncertainties, Brexit, trade wars, and geopolitical unrest. Asian centres and a resurging Paris are fighting for that second place spot,” said professor Michael Mainelli, executive chairman of Z/Yen.
Hong Kong is now only two points behind London, while Singapore and Shanghai remain in fourth and fifth position respectively.
Shenzhen, Dubai, and Sydney entered the top 10 – easing out Toronto, Zurich, and Frankfurt.
South Africa has two major cities in the ranking, with Cape Town officially overtaking Johannesburg in the 2018 rankings.
While Cape Town extended its lead in this year’s ranking both cities fell in the overall rankings.
Johannesburg is now ranked 81st in the world (down 33 places) while Cape Town was ranked 63rd (down seven places).
Cape Town has increased its appeal as a tech hub with a growing startup culture. It is also home to a number of large companies including Investec, and Capitec.
There were also significant improvements for Mauritius, Bahrain, and Nairobi.