Yahoo Finance 20 Countries with the Largest Urban Population in the World
In this article, we will take a look at the 20 countries with the largest urban population in the World. If you want to skip our discussion on the trends in urban population, you can go directly to the 5 Countries with the Largest Urban Population in the World.
The global trend toward urbanization is accelerating, with more than half of the world's population now residing in urban areas. This represents a significant increase from just one-third in 1950, and projections suggest that it will surpass two-thirds by 2050. Achieving sustainable development in this context depends on effectively managing urban growth to create sustainable cities worldwide.
Currently, approximately 56% of the global population, totaling 4.4 billion people, resides in urban centers. This demographic shift is important as cities account for over 80% of global GDP. Analysts who support urbanization highlight several arguments in its favor. They point out that urbanization generally benefits individuals due to the significant income disparity between urban and rural areas. A study published by the International Monetary Fund (IMF) reveals that urban households in China typically earn around three times more than rural households.
Furthermore, urban areas tend to offer better access to education and healthcare facilities, leading to higher enrollments in urban schools and improved healthcare services compared to rural regions. Urban populations typically have female literacy rates about 35% higher than rural populations.
A study published in Regional Science and Urban Economics reveals that businesses also perform better in urban environments, with young companies experiencing faster earnings growth rates in metropolitan areas. Many countries are presently prioritizing the improvement of their urban areas to make them more eco-friendly. Key goals include building new infrastructure to reduce carbon emissions and ensuring sustainability. This has led to the rise of smart technology, which helps in efficient energy use, better security, improved mobility, and sustainable engineering.
Companies specializing in smart technology or related services that support sustainability are experiencing significant success. Examples of such firms include Schneider Electric SE (EPA:SU), Skanska AB (STO:SKA-B), and Brookfield Renewable Partners L.P. (NYSE:BEP).
Schneider Electric SE (EPA:SU) is a French multinational known for its focus on digital automation and energy management solutions. It serves various sectors, including homes, buildings, data centers, infrastructure, and industries. Schneider Electric ranks in the Fortune Global 500 and reported revenues of €35.9 billion in fiscal year 2023.
Skanska AB (STO:SKA-B) is a Swedish multinational construction and development company. It is considered among the largest construction companies in the world. The company’s famous projects include the renovation of the United Nations Headquarters and the World Trade Center Transportation Hub project. Skanska AB (STO:SKA-B) is recognized for its collaboration with IKEA in the BoKlok venture, offering sustainable homeownership in Sweden and the UK. It is a leader in green building and sustainable construction.
Brookfield Renewable Partners L.P. (NYSE:BEP) is a publicly traded limited partnership firm that owns and runs multiple renewable power assets. The company owns hydroelectric plants, wind farms, solar, and storage facilities. The company shared a financial update in its Q4 2023 earnings call:
“Our operations continue to perform well this quarter, benefiting from the diversification of our fleet and strong all-in power prices. We delivered solid results in the fourth quarter with FFO of $0.38 up 9% year-over-year, and on a full year basis, we delivered record FFO at $1.1 billion or $1.67 per unit, a 7% increase over the prior year. While our results fell slightly below our target of 10% plus FFO per unit growth for the year, largely due to later than expected transaction closings during the fourth quarter, we remain well positioned to achieve our goal going into 2024 and beyond. We are already seeing the benefits of our growth activities, which were back-end weighted this year as we commissioned nearly half of our almost 5,000 megawatts of new capacity in the fourth quarter.”
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Our Methodology
To compile our list of the 20 countries with the largest urban population in the world, we used data from the World Bank. The countries have been shortlisted and ranked based on their urban population percentage relative to the total population as of the year 2022.
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20 Countries with the Largest Urban Population in the World
20. Denmark
Urban Population Percentage: 88%
Denmark's economy primarily revolves around the service industries, with trade and manufacturing contributing a smaller share of the GDP. In 2022, the country's GDP reached $400.2 billion. Around 88.37% of Denmark's population resides in urban areas. Denmark ranks among the largest oil producers in Western Europe and is one of the leading global producers of windmills.
19. Venezuela
Urban Population Percentage: 88%
Venezuela is a significant petroleum producer, with petroleum extraction and processing accounting for over 75% of its exports. Manufactured products constituted approximately 16% of exports in 2021, while agricultural products represented only 1.6%. In 2022, the country's GDP amounted to $482.4 billion, with 88.38% of its population residing in urban areas. However, Venezuela continues to deal with an economic crisis and high inflation rates as it strives for recovery.
18. Sweden
Urban Population Percentage: 88%
Sweden, a Scandinavian country, recorded a GDP of $591.2 billion in 2022. The industrial sector contributed 23.95% to the GDP, while the service sector accounted for 63.62%. Moreover, Sweden is expanding its engineering, mining, steel, and pulp industries to improve its international competitiveness.
17. Lebanon
Urban Population Percentage: 89%
In 2022, Lebanon recorded a GDP of $23.13 billion. Around 89.26% of the country’s population resides in urban areas. Since 2019, the country has been dealing with an economic crisis due to financial mismanagement and high debt, among other factors. The services and financial sector remain important components of its economy.
16. Bahrain
Urban Population Percentage: 90%
Bahrain is a small country in the Middle East. In 2022, the country’s GDP stood at $44.38 billion. Despite its reliance on oil, Bahrain is one of the most diversified economies in the region, with non-oil sectors accounting for approximately 82% of the GDP. Among these sectors, the financial sector holds the largest share, contributing 17.4% to the total GDP.
15. Gabon
Urban Population Percentage: 91%
Gabon is one of Africa’s richest countries in terms of per-capita GDP due to its oil revenues and small population size. In 2022, the country recorded a GDP of $21.07 billion. Meanwhile, around 90.74% of its population resides in urban areas. The country's primary exports consist of petroleum products, which make up 80% of its total exports, alongside manganese, uranium, and timber. Approximately 50% of Gabon's total exports go to the US market.
14. Jordan
Urban Population Percentage: 92%
Jordan recorded a GDP of $48.65 billion in 2022. The country sees the vast majority of its population, 91.81%, residing in urban areas. The economy is predominantly service-oriented, accounting for roughly 75% of the GDP, while the industrial sector contributes less than 20%. Key exports from Jordan include textiles, potassium, phosphates, fertilizers, vegetables, and pharmaceutical products.
13. Luxembourg
Urban Population Percentage: 92%
Luxembourg has a strong financial services sector and acts as an international center for private banking. The country also has a stable political environment, with low levels of debt, which attracts businesses and supports economic growth. In 2022, Luxembourg’s GDP reached $81.64 billion. Around 91.88% of the country’s population resides in urban areas.
12. Japan
Urban Population Percentage: 92%
Japan is one of the most advanced economies in the world, and its electronics and automobiles are amongst the most traditionally prominent sectors. The services and technology sectors have also gained prominence in recent years. Around 91.96% of the country’s population is urban.
11. Argentina
Urban Population Percentage: 92%
Argentina has one of the strongest economies in Latin America, with a reliance on services and manufacturing. This marks a shift from its traditional dependence on agriculture and cattle farming. In 2022, the country's GDP reached $631.1 billion.
10. Israel
Urban Population Percentage: 93%
Israel, located in the Middle East, had a GDP of $525 billion in 2022. The main industries include technology, manufacturing, and diamond polishing and cutting. Around 92.76% of Israel’s population lives in urban areas, making it among the top 10 countries with the largest urban population in the world.
9. Netherlands
Urban Population Percentage: 93%
The Netherlands’s economy is highly developed, with a focus on trade, logistics, manufacturing, and sustainable and renewable energy. The country recorded an urban population of over 16 million in 2022.
8. Iceland
Urban Population Percentage: 94%
Iceland, located between the Arctic and North Atlantic Oceans, is one of the least densely populated countries globally. With a GDP of $28.06 billion in 2022, the country's main drivers were international tourism and strong domestic demand. Iceland is at the eighth position on our list of countries with the largest urban population in the world.
7. Uruguay
Urban Population Percentage: 96%
Uruguay, situated in South America, has a relatively stable economic and political environment within the region. With a GDP of $71.18 billion in 2022, the county's economy has transitioned from its historical reliance on beef and wool exports to a blend of local manufacturing and services. The majority of the population resides around the capital city of Montevideo, with limited economic incentives for rural living.
6. San Marino
Urban Population Percentage: 98%
San Marino is predominantly urban, with its three primary cities - San Marino, Borgo Maggiore, and Serravalle - housing 98% of its population. While tourism plays a significant role in the country's economy, agriculture and manufacturing are also important sectors.
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Disclosure: None. 20 Countries with the Largest Urban Population in the World is originally published on Insider Monkey.
