Compared with other European metropolises the Helsinki Region is not among the biggest, but it is a modern, dynamic and wealthy city. The Helsinki Region has the largest population concentration in Finland and it is the primary economic centre. It grew rapidly during the second half of the 1990s, but this expansion slowed in the first three years of this millennium. Since 2004, Helsinki’s growth has accelerated again and it is predicted that it will remain among the fastest growing cities in Europe during the second half of this decade.

This study is based on empirical research carried out and published by the European Economic Research Consortium (ERECO). The research work was led and co-ordinated by Cambridge Econometrics Ltd. The Finnish partner in the project was Kaupunkitutkimus TA Oy (Urban Research TA Ltd).  The study is carried out annually.

The study covers 27 countries in western and central Europe. All 25 EU countries are included and, in addition, Norway and Switzerland. The set of metropolises comprises 45 urban areas. In most countries in this survey, the capital is included, except in the case of Switzerland where Zurich and Geneva have been selected. However, in each of the Nordic countries, the capital is the only metropolis in the study: Helsinki in Finland, Stockholm in Sweden, Copenhagen in Denmark, and Oslo in Norway. This is also the case in most other small countries of the EU, whereas in the big EU countries the study embraces several major metropolises along with the capitals. The new EU countries are represented by Prague in the Czech Republic, Budapest in Hungary and Warsaw in Poland. The Baltic states are included in group of countries but the capitals are absent from the set of metropolises. The cities of the study are presented on the map below.

Collectively, the metropolises of Europe are the engine of economic growth in the EU and this role will probably continue in the future. However, there are major structural problems in several metropolises, particularly in central Europe, which will limit their growth potential. The most diverse and dynamic centres of western Europe have grown fairly fast. However, many cites oriented towards manufacturing or public administration have grown rather slowly. The overall picture since 1995 is that the big cities of the countries fringing the zones surrounding the old core of the EU have grown fastest and this pattern is predicted to continue. This outer ring of growth includes the metropolises of Ireland, Portugal, Spain and Greece, i.e. those having benefited greatly from the regional funds of the EU. Another group consists of the capital cities of the new EU countries of eastern central Europe, which have been restructuring their institutions and economies and attracting foreign investments. In the northern peripheries, the Nordic capital cities, notably Helsinki and Stockholm, have expanded rapidly. They are modern and dynamic cities without major structural problems. Their economies are particularly oriented to the growing markets of the new EU states, Russia, China and other Far East countries, and the USA, and as a result they are less dependent on the mature markets of the large EU countries.

City of Helsinki Urban Facts
P.O. BOX 5500
FIN-00099 City of Helsinki
Finland
http://www.hel2.fi/tietokeskus/eng/index.html
Mr. Juha Suokas

11/10/2006

Seppo Laakso & Eeva Kostiainen

research

Urban Policy > Economy knowledge & employment

Urban economy