MANCHESTER is "well-placed" to prosper throughout the recession and into the future, according to the findings of a major £1.35m economic review published today.

The Manchester Independent Economic Review (MIER) also concluded that Manchester is one of the best placed cities in Britain to match the economic strength of London and the south east.

The review, the largest economic survey to be conducted by a city-region in Europe, was launched by Chancellor Alistair Darling, last June.

The first of seven reports that will be used to influence Manchester's economic strategy for the next decade also highlights that investment by foreign firms here - in contrast to the rest of Britain - does not "crowd out or displace jobs and investment by domestic firms".

It also found that Manchester has the second largest concentration of people and businesses in the country with a highly skilled, lower cost workforce.

Furthermore, large businesses within the region are Manchester's main source of investment and productivity and help create a "highly developed and competitive regional infrastructure".

Steven Broomhead, chief executive of the Northwest Regional Development Agency (NWDA) said the report provides conclusive evidence that Manchester has the potential to emerge from the recession in an even stronger position.

He said: "The purpose of the MIER is to help address the Greater Manchester approach to long-term sustainable economic growth. As the NWDA works with partners to develop the Northwest Regional Strategy, it is clear that the findings of the MIER and the challenges they pose for the region's largest metropolitan economy will be integral to the region's growth objectives."

The NWDA has provided financial backing for the report.

Colin Sinclair, chief executive of MIDAS, Manchester's inward investment agency, said: "These are challenging times and Manchester has factored in the implications of a recession and we are working extremely hard to ensure we are fit for purpose.

"We are confident of emerging stronger than our competitor cities, not only in the UK, but across Europe."

The review has been chaired by Sir Tom McKillop, who is chairman of the Royal Bank of Scotland and former chief executive of AstraZeneca.

Others involved include Jim O'Neill, head of global economic research at investment bank Goldman Sachs, Manchester University's Diane Coyle and Jonathan Kestenbaum, chief executive of the National Endowment for Science, Technology and the Arts.