MAGYAR NEMZETI BANK
4.3 Position of budapest in the international rankings
At present, 80 per cent of the world’s GDP is generated in urban areas (World Bank, 2015). In the case of Europe, it has proven that in the cities where the number of inhabitants exceeds 1 million the per capita GDP outstrips the European average by 25 per cent (UN, 2014b). The urban concentration of high value added activities is even more apparent in Hungary. Table 4-2 Weight of the capitals in the visegrád countries, 2012 Contribution Contribution GDP per to national to the capita as a GDP countries share of the (per cent) population national average (per cent) Budapest
38,13
17,46
218,38
Bratislava
27,25
11,27
241,94
Prague
24,70
11,84
208,69
Warsaw
12,92
4,44
291,00
Source: EUROSTAT (2015)
As a result of this, Hungary is represented first of all by Budapest in the decision-making process of many large enterprises, particularly in the service sector. Accordingly, the international perception of Budapest and its position in the competition of cities is relevant for the international competitiveness of the entire country. The international rankings that provide a comparative assessment of the cities list these regions based on different criteria, where the quality of life, liveability, quality of environment, the innovation capacities and economic power relations are of utmost importance. On a global scale, the relative position of Budapest is best in the area of innovation, quality of life and liveability. In the rankings focusing on these aspects, it usually belongs to the top 30 per cent (Chart 4-12).
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GRowTh REpoRT • 2015
budapest achieved the highest rank in the Global innovation Cities index, where it ranked 64th out of 445 ranked countries. This indicator rates the maturity of the background sectors responsible for the cultural assets, the human infrastructure and the favourable innovation environment, as well as the conditions necessary for the creation and development of the network markets. The global list is led by San Francisco, New york and London. In the CentralEuropean region Budapest is overtaken only by Vienna (6th) and Prague (62nd). in the area of liveability, budapest was ranked high in the Spatially Adjusted Liveability index, initiated on an experimental basis by the Economist Intelligence Unit (EIU) in 2012. In this respect, the capital took the 24th position out of 70 ranked countries. The ranking is led by Hong kong, Amsterdam and Osaka. A special feature of the indicator is that in addition to the traditional liveability indicators, it also takes into account the spatial character of the urban environment determining the social welfare and quality of life, as well as the equal spatial access to the city’s green areas, natural resources and to the region’s cultural values. The cost of living measured by international standards shows a favourable picture; in the ranking of the most expensive cities Budapest is at the end of the list, which is a favourable position and at present this factor represents a major competitive advantage. In the Mercer ranking, which lists the cost of living, living costs higher than those in Budapest are indicated for 170 cities out of 207 ranked cities. Based on the positions achieved in the various rankings budapest also performed relatively well in the competitiveness and the prosperity dimensions. In the EIU competitiveness list, within the CentralEuropean region Budapest (35th) is preceded only by Vienna (29th); which order is similar to the UN’s City Prosperity Index, where Budapest (21st)
