Manchester has been named one of Europe’s five cities to watch after recording some of the strongest economic and productivity growth in the UK.
The recognition comes from Oxford Economics’ 2026 Global Cities Index, which says Manchester’s universities, cultural scene, infrastructure investment and appeal to younger workers are helping it stand out. For the report, “Manchester” includes the city itself, Trafford and Salford.
A rising economic force
Manchester was included alongside Eindhoven, Tallinn, Toulouse and Warsaw in a list designed to identify emerging stars of the global economy.
Dmitriy Gruzinov, Oxford Economics’ lead economist for Europe, said Manchester had seen the strongest GDP and productivity growth among UK cities in recent years, alongside some of the biggest employment gains in Europe.
He pointed to the city’s lower costs and rich cultural offering as reasons it has attracted younger workers. Major infrastructure investment and the strength of its university sector were also identified as important supporting factors.
Oxford Economics’ cities and regions director Liam Sides said Manchester was unusual in the UK for combining substantial productivity gains with a major expansion in employment, particularly in office-based sectors.
Greater Manchester’s long-term prospects
The wider city region was valued at £144bn in the report. Oxford Economics expects it to add the fifth-largest number of jobs in Europe over the next 25 years.
Greater Manchester was ranked the third strongest area in the UK, behind London and Edinburgh, and 90th worldwide. Leeds was fifth nationally and 103rd globally, while Newcastle ranked 10th in the UK and 150th internationally. Birmingham came ninth nationally and 118th worldwide.
The report praised Greater Manchester’s cultural economy and its professional and business services sector. It also highlighted the region’s universities, public transport investment, new homes, offices and workspaces.
Manchester City Council leader Garry Bridges said the city’s progress reflected long-term strategies, stable leadership and ambition. Greater Manchester mayor Bev Craig said the region had created an environment where businesses could grow and offer high-quality jobs.
Housing remains a challenge
Oxford Economics also warned that high housing costs could hold back further growth. Expensive homes and rents can make it harder for workers to move to areas with more jobs, restricting the supply of talent.
Liam Sides said planning reforms were welcome but argued that stronger action would be needed to unlock the housing market and support future growth.
Greater Manchester leaders said the next priority was making sure local people had the skills and confidence to benefit from new opportunities, while spreading growth beyond the city centre and across the wider region.
Why this is good news for Britain
Manchester’s performance strengthens the UK’s economic base outside London, with strong productivity, expanding employment and a projected rise in jobs across Greater Manchester. Its universities, transport investment and cultural industries are helping attract workers and businesses while creating opportunities in the North.
