France tops European FDI, UK holds 2nd position: EY survey

FDI-backed projects in the UK decreased by 6.4 per cent in 2022, reaching 929, down from 993 in 2021. The share of all European FDI projects secured by the UK also slipped from 16.9 per cent in 2021 to 15.6 per cent in 2022. However, the UK retained its lead in Europe for new projects.

The persistent impact of Brexit, coupled with high energy prices and inflation across Europe, have likely contributed to the UK's reduced project numbers. Meanwhile, France consolidated its position as Europe's FDI leader, increasing its total project count by 3 per cent to 1,259, as per EY’s survey.

Despite the dip in overall project numbers, the UK excelled in the value of projects it attracted, particularly in job creation. The UK led Europe in total jobs (47,000), outperforming Spain (39,000) and France (38,000). It also retained its position as Europe's leading country for new projects. Of the UK's 929 total projects in 2022, 646 were new.

While investor sentiment towards the UK dipped in the short term, with 32 per cent of international investors naming the UK as one of Europe’s three most attractive investment locations, compared to 44 per cent the previous year, long-term prospects remained strong. A record 65 per cent of investors said they were planning on making an investment in the UK this year.

The US continued to be the leading source of FDI projects for both Europe and the UK, with one in four UK projects having their origin in the US. Interestingly, while Germany was Europe’s second largest origin country for FDI, India was the UK’s second most important source, the survey added.

Regionally, despite the 6 per cent overall decline in the UK's FDI project numbers, over half of the UK's nations and regions actually saw an increase in FDI projects in 2022. London, despite experiencing a 24 per cent drop in FDI projects, still hosted the majority with 299 projects, accounting for 32 per cent of all UK projects.

Fibre2Fashion News Desk (DP)