Leeds' economy to put major cities in the shade

The Oxford Economics report also predicts that Leeds will outperform Manchester and Birmingham as the global economy faces up to the sovereign debt crisis.

Leeds is expected to achieve a GDP (gross domestic product) growth rate of 2.8 per cent between now and 2015, which places it 13th in Oxford Economics' survey of 46 European cities.

Bucharest heads the list, with estimated growth of 7.2 per cent, while inner London is eighth with a projected growth of 3.5 per cent. Manchester is 19th (2.5 per cent) and Birmingham comes in 23rd (2.3 per cent).

Leeds comes 20th out of the 46 cities in terms of predicted growth in employment rates. Jobs growth in Leeds is expected to be 0.7 per cent between 2010 and 2015.

This list is also headed by Bucharest, which is expected to achieve growth of 3.7 per cent. Manchester (0.6 per cent) and Birmingham (0.3 per cent) are 26th and 29th respectively.

Dr Neil Blake, the director of Economic Analysis at Oxford Economics, said: "Central European cities are forecast to grow faster than their western European neighbours, much as they have done over the past decade, as they benefit from strong underlying national growth rates and further development of private service industries.

"But job creation in these cities is unlikely to compare as favourably as weak demographics and restructuring in employment-intensive industries constrain growth potential."

Mr Blake said Leeds had a stronger private sector than many other parts of the north of England. It had also developed a cluster of businesses in the financial services sector.