London got knocked out of Fortune Global 500’s top 5 cities for the first time in five years—but another city in Europe is giving it competition

3 comments

1. **From reporter Prarthana Prakash:**

   A quarter of the 500 largest companies in the world in 2023 are based in just five cities—and for the first time in five years, London is not one of them.

   England’s capital, which is among Europe’s largest cities by population and is also Britain’s business hub, slipped from the top five rankings this year, down to eighth position with nine companies. In 2022, London occupied fourth place, with 13 companies headquartered in the city.

   **Fortune Global 500 top five cities:**

   * Beijing (53 companies in the Global 500)
   * Tokyo (29)
   * New York (16)
   * Seoul (13)
   * Shanghai (12)

   Over the years, London has been competing neck-to-neck with another European city—Paris. The French capital is home to a mix of finance, luxury and consumer brands, and in 2023, it passed London to come in sixth on the list of most Global 500 companies.

2. > However, increased isolation and export hurdles caused by Brexit as well as depressed economic activity during the pandemic have presented new challenges for companies operating out of the city.

   > “London’s position has come under threat from a number of challenges including rising costs (its success has made it a relatively expensive city), a slowdown in U.K. economic growth, the impact of COVID, and Brexit,” Lyne said.

   Oh dear, the B word raises its ugly head again. Who would have guessed.

3. The effect on London of Brexit won’t be immediate, unless we rejoin the EU I suspect London as a financial capital will be rather different in a generation.

   “How did you go bankrupt?” Bill asked.

   “Two ways,” Mike said.

   “Gradually and then suddenly.”

   – Ernest Hemingway, The Sun Also Rises.

   ​

   Oh and even though Paris is doing well, the longer term champion could be somewhere unexpected like Warsaw.