Toronto has slipped a notch in a global ranking of cities as a good place to live and work, according to an annual report by PwC.

Ranked third out of 27 cities, just behind New York and London, Toronto’s performance by most measures is still outstanding, the study found.

“Toronto’s economic strength, strong cultural and environmental values and reputation for safety make it a truly livable and attractive place to be for both businesses and citizens alike,” said Raj Kothari, managing partner, Greater Toronto Area, PwC.

But Toronto slipped from second place last year to third after scoring poorly on a new indicator called City Gateway.

The category measures things like number of hotel rooms, international tourists and business meetings and access from the airport to the central business district.

On that score, Toronto ranked 19th out of 27.

“In London, I can get on the subway at the airport and be downtown in 45 minutes for £4 (about $6.25). That accessibility for tourists and business people is extremely important,” Kothari noted. “London has a huge number of hotels all across the city because people can move from one corner to the other by subway.

“Here you’ve got hotels at the airport, hotels downtown. And the only access to hotels downtown is a taxi, for $65 to $70,” Kothari added.

The problem is being addressed, he noted, referring to plans by Metrolinx to provide express rail service between Pearson International Airport and Union Station in time for the Pan Am and Para Pan Am Games in 2015.

The fifth annual edition of Cities of Opportunities looked at 27 centres of finance, commerce and culture.

As the world becomes increasingly urbanized, the 100-page report attempts to measure what works as well as what’s needed to succeed in the future.

Based on the premise that healthy cities rely on both positive economic and social growth, the study measured 10 different indicators — from innovation and technology to livability and environment.

While New York held onto its first-place position, London moved up four spots to rank a close second due partly to scoring extremely high on the new City Gateway measure.

Toronto came in third ahead of such international hot spots as Paris and Stockholm, which ranked fourth and fifth respectively.

Among the major indicators, Toronto scored in the top three for intellectual capital and innovation, health and safety, environment, and transportation and infrastructure.

The transportation index did not measure traffic congestion, a frequent complaint among Toronto residents, Kothari said.

Instead, traffic problems were moved into the “demographics and livability” indicator this year, where Toronto failed to make the top three.

Toronto also scored below the top three on economic clout, ease of doing business and cost, the study found.

The report is intended partly to help urban planners and policy makers learn what makes cities successful and where their own city ranks among global competitors, Kothari said.

The study also examined the impact of continuing economic uncertainty and technology on jobs and found cities with a strong knowledge base and good travel connections would fare best. They included London, Tokyo and New York. The impact on Toronto was mildly positive.

The 27 cities in the study account for 8 per cent of the world’s economic output (as measured by gross domestic product) with only 2.5 per cent of the global population.

By 2025, PwC predicts an additional 19 million individuals will live and 13.7 million will work in the cities.

They will generate an additional $3.3 trillion in gross domestic product, assuming modest world growth rates.

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Cities in emerging countries will continue to rely on developed ones, the report predicted.

Population and employment will surge in cities like Beijing, Mumbai, Istanbul and Sao Paulo fuelling demand for roads, schools, hospitals, water and sewage plants and other infrastructure projects, the report predicts.

Cities like Beijing and Shanghai will need to devote roughly 42 per cent of their gross domestic product to infrastructure projects between now and 2025, compared to mature cities like London and New York, which will need to invest 17 and 20 per cent respectively.