Greater Manchester’s economy is expected to grow to nearly £71billion by the end of 2023 and nearly 28,000 jobs will be created, according to a new economic report from law firm Irwin Mitchell.
However, he also warns that the race-up program will stall unless more foreign direct investment (FDI) is attracted to the region.
Irwin Mitchell’s UK Powerhouse report, produced by the Center for Economics and Business Research (Cebr), predicts Greater Manchester’s economy will be worth £1.9bn higher and the region will employ 27,700 more people by the end of 2023 than in the fourth quarter of 2021.
But the report also warns that other cities in the North will not be as dynamic. The economic growth of northern cities is expected to be outpaced by their southern counterparts and the study indicates that the south or east of England will be home to eight out of 10 cities by the end of next year. fastest growing.
Significantly, of the 50 locations included in the study, more than half of the slowest growing economies are expected to be in the North of England.
Highlighting Manchester’s strengths and potential, the report says Greater Manchester’s economic success has been driven by the diversification of traditional industries into new markets.
The North West offers the largest financial services sector outside of London, making Manchester an ideal position to attract FDI, which the UK Powerhouse report identifies as a key factor in boosting the national economy.
Manchester has also established itself as a national technology hub and is home to many key players in the video games industry. Several other employers, such as professional services firm EY, are also expected to ramp up operations in the city.
The report reveals that despite the most recent statistics indicating a general decline in the number of FDI projects in the UK, the North West is in fourth place with a 10% reduction compared to a 23% drop in London and the South-East.
The challenge will be for the North West to spearhead more of what is a key driver for sustained economic growth and to make inroads into Southern dominance in FDI.
The report suggests that success here is key to leveling up northern cities, allowing them to benefit from the job creation and growth that such foreign investment brings with them.
Bryan Bletso, Partner and Head of International at Irwin Mitchell, said: “This latest report from UK Powerhouse clearly shows that northern cities like Manchester have huge potential.
“The Greater Manchester International Strategy report highlights the importance of working with the government on the implementation of a new investment strategy. The incentives needed to generate additional FDI can unleash the strength of a region like the North West and achieve not just the leveling agenda, but the wider goal of a truly global Britain after Brexit.
He added: “The UK Powerhouse report shows the North West is well placed to make the jump to higher performance in terms of FDI, having seen a lower percentage change than other regions.
“Now is the time to invest in Manchester’s success and in doing so the corresponding economic growth and job creation will go a long way to safeguarding future prosperity and making leveling a reality.
“With targeted investment for northern regions in growth areas such as life sciences, coupled with policies and incentives to encourage new inflows of FDI, many more should be able to follow in Manchester’s footsteps. recognizing the transformative power of FDI on local economies.
“The North West’s fourth position for FDI is cause for optimism and its performance in the coming years should be an indicator of the leveling process in the future.”