Manchester set to be ‘leading centre for growth’

Manchester’s economy is set to outpace the UK’s national growth rate between 2025 and 2028, according to professional services firm EY’s latest Regional Economic Forecast.

The report projects Manchester’s Gross Value Added (GVA) to grow by an average of 2.1 per cent annually over the period, exceeding the UK’s 1.6 per cent growth rate. 

Only Reading is forecast to grow faster outside London.

Manchester also stands out as a jobs’ powerhouse, set to record the joint-fastest employment growth of any UK city at 1.3 per cent per year.

By 2028, Manchester’s economy is expected to be £2.9 billion larger than in 2024, with knowledge-intensive industries playing a key role. 

Information and communication, alongside professional, scientific and technical sectors, are forecast to grow by 2.6 per cent and 2.8 per cent annually, respectively, making up nearly a quarter of the city’s economy.

Hilary Heap, EY’s North market leader, said: “Thanks to its prowess as a hub for tech and professional services, Manchester is particularly well-positioned to capitalise on this, with the city projected to be one of the UK’s leading centres for growth over the next three years. 

“Manchester’s continued success reflects its strategic focus on building skills and capabilities in high value sectors and creating an attractive destination for investment.” 

The wider North West region is forecast to see slightly slower growth, averaging 1.5 per cent annually, with employment increasing at a rate of 0.6 per cent, just below the national average. 

Liverpool is expected to grow by 1.5 per cent annually, ranking eighth in the UK, while its employment growth is set to match the national average at 0.7 per cent. 

Warrington and Chorley are also forecast to perform well, with both set to outpace the regional growth rate.

Conversely, Wigan and Cumberland are projected to see the slowest growth, averaging 1.2 per cent per year, while Blackpool, Preston and Blackburn are expected to lag behind at 1.3 per cent.

Hilary added: “While the broader North West region is anticipated to see steady growth, it may lag slightly behind the national average in the coming years. 

“This narrative is one of untapped potential, so ensuring that the right talent and investment can access more of the region’s towns and cities beyond Manchester through improved connectivity and skills development will be essential for accelerating their growth.”

You can download EY’s Regional Economic Forecast here.

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