London has maintained its position as the most attractive city in Europe for foreign direct investment, according to data compiled by professional services company EY.
The IS description This represents 394 foreign direct investment projects in capital in 2021, an increase of 2.9% from 2020.
However, London’s foreign investment projects failed to fully recover to pre-pandemic levels, with capital attracting 538 investments in 2019. EY said this slow recovery was due to a decline in digital projects in London last year.
Foreign direct investment – also known as IDI – includes mergers and acquisitions, construction of new facilities and the purchase of interest in a company by an overseas entity.
Across Europe, the UK ranks second in inward foreign direct investment projects behind France, but ranks third in Germany.
There were a total of 993 foreign direct investment projects in the UK last year, an increase of 1.8% from 2020.
It means that London attracted 40% of total foreign direct investment into the UK last year.
The data is another sign of confidence in the UK capital, London fourth in the world for VC technology investment.
‘Still to be seen’ balancing policy on IDI data
Outside of London, Manchester and Edinburgh were the most popular destinations for foreign direct investment in the UK.
By region, Scotland saw healthy growth with 14% increase in investments and the West Midlands with a 28% increase.
However, FDI projects in Yorkshire and the Humber fell by 27%, while foreign investment in the East of England fell by 26%.
FDI projects in Wales and the North West also declined in 2021.
The mixed results across the regions suggest that government “level-up” policy is struggling to attract foreign direct investment.
“Leveling has declined as a policy idea, and almost two – thirds of the investors we surveyed heard about it last year,” said Peter Arnold, EY’s chief economist in the UK.
“Awareness has been growing this year, with a similar share saying that leveling up influences their location decisions and that they will seek to invest where government support is available – although this is not apparent. still the number of projects. ”
London is the most attractive city in Europe for foreign direct investment
Source link London is the most attractive city in Europe for foreign direct investment