Manchester Outperforms UK Economy With Surge in Global Investment
Manchester, Friday, 30 January 2026.
Growing at twice the national rate, Greater Manchester has secured the highest foreign investment outside London, drawing tech giants like IBM and Roku to the region.
Defying National Stagnation
While much of the UK economy faces sluggish performance, Greater Manchester has carved out a distinct trajectory of growth. Former Treasury minister and Goldman Sachs chief economist Jim O’Neill notes the shift in perception, stating that while skeptics once dismissed local ambitions as “cocky Mancunians talking bullshit,” the economic evidence has become undeniable [1]. The region is currently expanding at twice the national rate and has successfully attracted the highest volume of foreign direct investment of any area outside London [1]. This influx is underscored by the arrival of major global corporations; alongside IBM and Roku, the city has secured operations from Booking.com, Klarna, Bosch, and Auto Trader [1]. This corporate migration suggests that international capital is increasingly viewing the North of England not merely as a cost-effective alternative to the capital, but as a distinct economic hub with its own competitive advantages.
The ‘Manchesterism’ Model
The region’s current success is deeply rooted in a political strategy often referred to as “Manchesterism,” which advocates for the devolution of power from centralized government to local authorities [2]. This framework was formalized in a 2014 devolution agreement that the Greater Manchester Combined Authority (GMCA) credits with delivering greater local accountability and legislative powers [2]. In an op-ed published on January 22, 2026, Mayor Andy Burnham highlighted the efficacy of this model, describing Greater Manchester as the “fastest-growing city-region economy in the U.K.” [2]. This approach has allowed local leaders to tailor economic strategies to regional strengths rather than relying on broad, national directives.
Infrastructure and Connectivity
A critical component of this regional autonomy has been the ability to direct investment into transport infrastructure, facilitating a more integrated labor market. Since the 1990s, the region has aggressively expanded the Metrolink tram network, with investments since 2011 trebling its size [3]. Consequently, passenger numbers have surged from 19.2 million in 2010 to 46 million in 2024, an increase of 139.583 percent [3]. Further integration is imminent; following the completion of bus franchising in 2025, the first Bee Network commuter rail services are scheduled to launch by the end of 2026 [3]. These improvements have supported a structural shift in the local economy, with the share of city center jobs in Knowledge Intensive Business Services (KIBS) rising from less than a third in 2015 to 42 percent today [3].
Urban Renaissance and Demographics
The economic revitalization has catalyzed a profound demographic shift within the urban core. In 1991, Manchester’s city center was home to a mere 771 residents [4]. Today, that population is approaching 100,000, driven by a cultural and economic environment that retains a higher share of graduates than any other English city outside London [1]. This repopulation creates a virtuous cycle, providing the skilled labor force necessary to attract further high-value investment. However, challenges remain; despite this growth, disposable incomes in the Greater South East remain approximately 40 percent higher than in the rest of the UK, a disparity that has persisted at similar levels since 2008 [3].
Future Strategy: Reindustrialization
Looking toward the next phase of growth, local leadership has announced a strategy to “reindustrialise the birthplace of the industrial revolution” [5]. Drawing on research from The Productivity Institute at The University of Manchester, the GMCA has identified five pioneering sectors for targeted investment: Advanced Materials and Manufacturing, Digital, Cyber and AI, Health Innovation and Life Sciences, Creative Industries, and Low Carbon [5]. This pivot aims to transition the region from a service-based recovery to a center for advanced production and innovation, leveraging local academic expertise to secure long-term economic resilience [5].