This KPMG paper, the Future of Cities and Urban Economic Growth, is published in collaboration with the World Governments Summit. It aims to provide practical advice for city leaders, administrators, and stakeholders engaged in citizen-centric urban planning geared towards sustainability, resilience, safety, inclusivity, and cultural vibrancy. It was inspired by questions arising from discussions carried out at the KPMG Centre of Excellence for Infrastructure and Cities (Toronto)and builds on previous reports: KPMG-World Governments Summit papers in the Future of Cities series, Principles for Digital Transformation in Cities (2022) and Perspectives on Government Services, Cities, and Technology (2019).

The findings and recommendations presented are intended to have a long, interactive life; spark debate in panel discussions, workshops, and across media platforms; and take the conversation around these issues to new levels. Today’s context is a daunting one for cities. The hurdles are multiple and often inter-related: relatively high energy costs, inflation and interest rates; a lack of skilled workers; rising inequality in income and social inclusion; and mass migration.

Additional, existential threats (climate change, cybersecurity, artificial intelligence (AI), and global or regional conflict) may lead to the perception of ‘perma-crisis’, a continual state of disruption. City-specific problems, particularly in the first and third worlds (but less so in emerging countries), include: declining physical infrastructure, homelessness, lack of affordable housing, small business jeopardy, lack of green spaces, and lack of reliable broadband.