Rationale - what it means and why it is an important measure
A city product is essentially the gross national product (GNP) of a city, an estimate of economic output. A city product is an indication of the level of sectoral development and of city development, as well as of social insurance.
How it is compiled, what data are needed
The city product is the total product of a city as defined in national accounts procedures (USD$). This may be interpreted as either total income or value-added (wages plus business surpluses plus taxes plus imports), or total final demand (consumption plus investment plus exports).
The city product should be measured annually per capita.
To improve the level of economic development of a city.
Targets, benchmarks, reference values
No related international standards.
References to examples of application
City results by region, http://www.urbanobservatory.org/indicators/analysis/cityproduct.html
Other comments / background
Cities are engines of economic growth and development. Currently, cities generate more than half of national economic activities worldwide (Habitat Agenda, paragraph 155). Urban productivity, measured by city product, is a strong indication of the level of a city's economic development vis-à-vis the national level; it also informs about the level of investment, the efficiency of public and private enterprises, and the generation of productive employment in a city.