The UK remains the number one destination for foreign direct investment (FDI) in Europe, ahead of Germany and France, despite a decline in sentiment from foreign investors towards the UK as a place to invest.
The latest EY UK Attractiveness Survey shows an economy in transition, influenced by Brexit and the force of technological change, which is impacting on the mix of investment across sectors, project types and size.
There is still time for the UK to act to maintain its competitiveness in a post-Brexit world – but the window of opportunity is short.
- The UK attracted 6% more FDI projects in 2017 compared to 2016, but in a European market growing at 10%, its market share fell for the second successive year
- The UK’s attractiveness fell to third place in investor ratings behind Germany in first and France in second, which has seen a 31% surge in FDI projects, supported by the so-called “Macron effect”
- Investor concerns over Brexit led to a decline in financial services, business services and HQ investments into the UK, against an expanding European market
UK Attractiveness Survey: Inward investment after Brexit
Positive sentiment towards the UK hasn’t dramatically collapsed, but there are signs inbound flows are slowing, and the longer term outlook seems significantly more challenging
Scotland Attractiveness Survey 2018
An unprecedented run of success for Scotland, with foreign direct investment setting new records in each of the past three years
Europe Attractiveness Survey 2018
Reveals a slowdown in the pace of FDI influenced by four powerful game changers remaking the European rulebook on cross-border investment