More US Cities to Report Stagnant Growth in 2013
The sun reflects off New York's One World Trade Center as people stand in a park in Hoboken, New Jersey, in September, 2013 (Reuters)

About one third of America's 363 metropolitan areas - cities and their suburbs - will report stagnant or declining economic growth this year, a report warned.

119 US metropolitan areas will witness flat or negative economic growth in 2013, as opposed to only 73 in 2012, according to a report released by the US Conference of Mayors (USCM).

Out of the remaining two-thirds that will log growth this year, some 40% will see their economies grow by 1% or less.

The metropolitan area of Midland, Texas, will top the list of fastest growers in real GMP. Its economy will expand by 7.3%, according to the report, which was prepared by IHS Global Insight,

Odessa, Texas will follow at 6.4%.

The world's leading economy was hurt by automatic federal spending cuts known as the sequester; and by the 16-day partial shutdown of the government, according to the mayor's group.

Tepid economic growth in Europe has also hindered the US economy.

Metro employment will grow only 1.5% and real income will rise by 1.4%, according to the report.

"This report makes clear how critical metropolitan areas are to our nation's economy and ongoing recovery.

"Cites and their metro economies account for over 90% of Gross Domestic Product (GDP); nearly 86% of the nation's population; and almost 86% of all jobs. So if our metro areas aren't doing well, the entire country suffers," said USCM President Mesa (AZ) Mayor Scott Smith.

"Because the recovery is still very fragile, we cannot afford manufactured crises like sequestration, the debt ceiling battle and the federal government shutdown. So it is important that Washington not return to dysfunction, which has real economic consequences in our cities and on Main Street," Smith added.

Ratings firm Standard & Poor's estimated that the partial federal closure has cost the US economy $24bn and noted that the problem will result in a significant reduction in fourth-quarter growth.

American cities are still recovering from the 18-month recession that ended in 2009, the report added.

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