Manchester's economy has grown by more than 34% over the past decade, outstripping the UK average and other major cities, according to new research from the Centre for Cities. The London-based think tank found that Manchester's total gross value added (GVA) growth between 2013 and 2023 was the highest in the country, surpassing Bristol, Leeds, and Newcastle.
Outpacing London and National Average
London's economy grew by nearly 19% over the same period, while the UK average stood at 18.4%. The figures measure the value of goods and services produced within the city. Manchester and the wider city region also recorded a 19.7% rise in job creation, well above the UK average of 13.9%.
The findings come as Greater Manchester Mayor Andy Burnham pushes for a 'No 10 in the North' – potentially based in Manchester – should he become Prime Minister. The Centre for Cities report noted: "There are encouraging signs, with places such as Leeds and Manchester seeing strong productivity growth in recent years, adding to a sense of growing momentum around their role in raising national living standards."
Housing Challenges and Density Gaps
Despite the economic success, the report highlighted significant housing challenges. Manchester, Birmingham, and Leeds have the largest 'density gaps' compared to international peers, with estimated shortfalls of 231,000, 202,000, and 196,000 homes in their urban cores respectively. Bristol faces a smaller gap of around 18,800 homes. The report stated: "Closing these gaps would require a significant increase in housebuilding, especially in the largest of the big cities."
Local Government Response
Manchester City Council said its strategy to drive employment growth is delivering results. Since implementing the plan, the employment rate in Manchester has climbed to over 75% – a 6.4% rise since July 2023. Additionally, the number of businesses in Manchester has increased by 30% since 2015, with approximately 900 new firms added in 2024/25.
Councillor Gavin White, the council's housing and regeneration lead, commented: "Manchester has seen significant population growth in recent years, a testament to a global reputation and strong expansion across key sectors that have helped create tens of thousands of high-quality jobs in the last decade – helping to attract and retain a pool of world class talent."
He added: "With this success comes high demand which is why we are helping to drive a strong supply of quality office space to support businesses to thrive and attract new global names to Manchester. While also creating a strong and diverse housing sector – including record numbers of social, council and genuinely affordable homes being built in every part of our city. But we also know that far too many households still face high levels of deprivation and it's vital that we continue to convert economic growth into better living standards for our residents."
Future Outlook
The report underscores the need for continued investment in housing and infrastructure to sustain growth. White concluded: "It's our vision to make sure that we can create pathways to great jobs, alongside investment in our communities and transport link, that makes sure that everyone living in Manchester has the opportunity to share in the city's success."
