Manchester is an ‘emerging star of the global economy’, says Oxford Economics
Strong GDP growth, high-quality universities, and appeal to younger professionals were highlighted as key strengths of the city in the group’s latest report.
Manchester was chosen as one of five European cities to watch by Oxford Economics in the firm’s 2026 Global Cities Index, alongside Eindhoven, Tallinn, Toulouse, and Warsaw.
The list said it would “highlight some of the emerging stars of the global economy.” For Oxford Economics’ purposes, this part of the report used the term “Manchester” to mean the city as well as Trafford and Salford.
When discussing Manchester’s selection, Oxford Economics’ lead economist for Europe, Dmitriy Gruzinov, said: “My final city is Manchester, which in recent years has seen the strongest GDP and productivity growth among the UK’s cities, as well as some of the largest employment gains in Europe.
“This has been partly achieved through the city’s rich cultural offering and lower costs attracting many younger workers, while being supported by substantial infrastructure investment and its excellent university.”
Manchester City Council Leader Cllr Garry Bridges welcomed the news.
“This hasn’t happened by accident but is the result of clear long-term strategies, stable leadership and the sense of ambition which characterises Manchester,” he said.
“But what’s even more important is that this economic growth and job creation is projected to continue for many years based on the current trajectory.
“It’s vital to ensure that Manchester people are equipped with the skills and confidence to access these enormous opportunities and that everyone can share the benefits. That’s what we’re focused on.”
Looking at the city region
Greater Manchester was also in a position of strength, according to the Global Cities Index. Putting its GDP at £144bn, Oxford Economics predicted that the city region would add the fifth-largest numbers of jobs across Europe over the next 25 years.
Greater Manchester’s vibrant cultural economy and the strength of its professional and businesses sector were also hailed as assets.
The city region was ranked as the third strongest area in the UK, behind London and Edinburgh. It was ranked 90th globally.
Fellow Northern city Leeds came in fifth nationally and 103rd internationally. Newcastle was 10th nationally and 150th globally.
Birmingham, Manchester’s often rival for the second-city title, was ranked as the ninth strongest in the UK and 118th worldwide.
“Manchester is firmly positioning itself as a go-to European hub for talent and investment,” said Oxford Economics’ cities and regions director Liam Sides.
“It has been unique in a UK context for pairing large productivity gains with major employment expansion, particularly across office-based sectors.”
Mayor of Greater Manchester Bev Craig said it was “fantastic” to have the city region featured in the index.
“As the report says, our success has been built on the talent of our people, supported by long-term investment in public transport, our building of new homes, offices and workspaces, as well as our outstanding universities and vibrant culture,” Craig said.
“We’ve created the right environment for businesses to thrive and create high-quality jobs.
“But it also recognises that growth has come primarily from our city centres, across Manchester and Salford,” Craig continued.
“By investing through our Good Growth Fund and rolling out mayoral development corporations across the city region, we will ensure our future delivers good growth that benefits everyone, improves living standards and creates opportunities in every postcode.”
The problem of housing
It was not all good news for Greater Manchester and the UK. Housing was cited as a threat to further growth, with high housing costs explicitly listed as a weakness of GM.
The high costs to buy or rent a home impacts the economy of a place by restricting the movement of workers and preventing people from moving to job-dense areas.
“The government is right to pursue planning system reforms, but far more aggressive action is required to unfreeze the housing market and catalyse long-term transaction volume,” Sides said.
Oxford Economics crafts its Global Cities Index by examining and judging cities on their economics, human capital, quality of life, environment, and governance.
London was ranked as the second best-performing city worldwide, just behind New York.
