Foreign investors ‘continue to favour UK’
Inward investment remains strong despite the uncertain global economy, the Trade and Industry Secretary announced today.
Patricia Hewitt revealed that the UK attracted 709 investment projects in the year 2002/2003, creating more than 34,000 jobs. The number of projects is down by 7%, but analysts have suggested that such figures are good considering the worldwide downturn.
And recent figures produced by Ernst and Young suggest that the UK remains the top investment location in Europe, despite concerns about its decision not to adopt the euro.
Commenting on the figures, Ms. Hewitt noted: “Britain is an excellent place to do business because of the economic decisions we have taken in government.”
“We have the lowest inflation for 30 years, the lowest interest rates in 40 years and the highest employment ever. And our economy – unique in the G7 – has avoided recession.”
However, she warned against complacency, claiming that if the economy could meet the Chancellor’s five tests for entry to the euro there would be new opportunities for foreign direct investment.
Despite the good figures, the UK’s share of inward investment to Europe has been falling – from nearly 30% in 1999 to just under 17% – leading to suggestions that Britain is suffering by not being in the euro-zone.
However, that reduction could be down to the severe economic problems in the US and Canada – two of the UK’s biggest investors.
Low barriers to entry, a flexible and motivated workforce and universities with world-class research facilities have all contributed to the UK’s competitive position, according to the Dti.
