UK named top European country for FDI stock in World Investment Report
This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government
The World Investment Report 2014 has confirmed the UK as the number-one host country in Europe for inward foreign direct investment stock.
The World Investment Report 2014, published by the United Nations Conference on Trade and Development (UNCTAD), has confirmed the UK as the number-one host country in Europe for inward foreign direct investment (FDI) stock – the value of foreign-held assets in the UK.
The World Investment Report is a comprehensive, independent report on the trends of FDI throughout the globe, in terms of financial value. It is an authoritative record of the relative performance of the UK, in attracting and retaining FDI.
Key highlights of the report include:
Global FDI flows increased by 9 per cent during 2013, showing a recovery from the 18 per cent reduction in FDI flows reported during 2012. The estimated value of global FDI stock is $25 trillion. (FDI flows are the cross-border movements of investment over a year.)
UK inward FDI stock increased by 8 per cent during 2013, reaching a record level of $1.6 trillion. The growth in the UK FDI stock is higher than the European average (7 per cent).
UK is confirmed as the number-two host country in the world for inward FDI stock, after the USA.
In terms of FDI inflows, UK is the second-largest recipient of FDI inflows in Europe, after Spain. The financial value of FDI inflows into UK was estimated to be at $37 billion, which is higher than Germany ($26.7 billion) and France ($4.8 billion). The only other European country recording a higher value of FDI flows was Spain ($39.1 billion).
The estimated value of UK FDI inflows recorded in 2013 is about 19 per cent lower than in the updated figure reported in 2013. This contradicts earlier reports by UNCTAD showing the UK as the largest recipient of FDI inflows in the world based on the first half results of 2013. It confirms the volatility of the FDI flows as a measure of foreign investment trends.
All independent reports on FDI project numbers have confirmed that the UK remains the number-one choice for FDI projects in Europe by attracting the highest number of investment projects during last year.
British Ambassador, Scott Wightman said:
I welcome the announcement of the World Investment Report 2014 of the UK as the number-one country in Europe for inward foreign direct investment stock, and its continued standing as the leading investment location and business base in the European Union . There are strong grounds for optimism about the UK economy: economic and business recovery is among the strongest in Europe, it is the fastest growing economy in the G7, and the UK was recently predicted to overtake Germany as Europe’s largest economy in the next 20 years.
Korean companies have long found the UK to be the natural base for accessing the EU market with almost 300 Korean companies having invested across the length and breadth of the UK. The combination of competitive corporate tax rates, a regulatory environment that supports business, flexible labour markets, a high quality workforce, and the leading global financial centre makes it the ideal location for Korean companies with global ambitions. And Korean companies can also take advantage of UK Government support: the Regional Growth Fund offers £3.2 billion in government support for job-creating investors. Korean companies such as DTR VMS and Lotte Chemicals have already benefited from over £9 million of Regional Growth funding.
Korean companies considering investing in Europe should contact firstname.lastname@example.org.