Introduction New York is one of the globally recognized cities due to its high economic development. The city’s economic growth has undergone several developments from the previous decades to date. This essay highlights most of this progress. The first section explains the city’s overall economic performance. The second section focuses on the city’s current state with respect to sectoral distribution. The third part highlights the evolution of the city’s economy in the immediate past. The fourth part describes the drivers of the economic changes. The fifth section focuses on the part played by public authorities in the city’s structural changes. The sixth part is about the city’s main problems and suggested economic strategies that can be applied in addressing the problems. The final part is the conclusion. The overall performance of New York City’s economy The improvements of New York City’s economic development have benefited both households and firms. This is from 1975 during which New York encountered a serious financial crisis. From that time New York ceased depending so much on debt finance, lowered property based taxation besides improving its financial reports. Although the overall tax burden has been high, there has been a sharp reduction in the amount of tax used in offsetting short – term loan. Firms and households have also greatly benefited from development in the city’s public transport network which occurred especially towards the end of the nineteenth century. A location’s attractiveness especially to investment is enhanced by public safety. During 1980s when New York City experienced an economic boom, crime rate was quite high but reduced drastically in 1991 during a recession. This trend went on for the next decade. Study shows that a sharp decline in the city’s crime rate was experienced in its poorest areas (Okuyama & Chang, 2004, p. 59). Although there has been an enhancement of land and labor prices as a result of the developments in the commercial and residential settings, the city’s amenities have not been without some liabilities. Key among these include high taxation on businesses, public schools and residences. However, statistics reveal that improvements have overwhelmed liabilities over the recent years. As far as the city’s industry mix is concerned, the focus has mainly been on the financial services industry. The growth of the city has been enhanced by investment in this sector, with most of the firms preferring to be close to each other. Moreover, patterns in the broader economy tend to be beneficial to regions with many growth industries. A comparison in the performance of these industries with those of other nations shows that a good number of local industries have expanded more in job growth than in income growth. Compared to other parts of the nation, the potential of the city’s expansion is low due to land and space limitations. Recently, rapid job growth at a national level has been evidenced by industries that are highly concentrated in the city. This trend is expected to continue in the coming years. Specifically, nationwide job and earning growth has resulted from industries that deal in services such as securi