The UK remains second in EY’s annual ranking of European countries based on their ability to attract Foreign Direct Investment (FDI) projects and was the only country in the top three to see a year-on-year increase in project numbers. France ranked first in Europe for the fifth year in a row, while Germany followed in third place, according to the EY 2024 UK Attractiveness Survey. The UK was home to 985 FDI projects in 2023, up 6% from 2022.
Total number of FDI projects in UK grows as Europe records overall decline
Europe as a whole recorded a year-on-year decline of 4% with a total of 5,694 projects registered in 2023. This was the continent’s lowest FDI total since 2020 and was 11% lower than pre-pandemic levels (6,412) and 14% lower than 2017 (6,653). 2017 represented Europe’s highest peak for projects in the past decade.
France was Europe’s largest recipient of foreign investment, with 1,194 FDI projects in 2023. However, this was a 5% decrease compared to the total number of projects in 2022. Germany registered 733 projects in 2023, which was a 12% decrease compared to the previous year.
The UK’s share of all European FDI projects grew to 17.3% in 2023, up from 15.6% in 2022. However, the UK’s broader FDI trend mirrors that of Europe by recording lower levels of projects over the past four years compared to pre-pandemic levels. The number of projects in the UK has remained below 1,000 since 2019, with 220 fewer projects recorded in 2023 than at the UK’s peak of the decade in 2017, when 1,205 projects were recorded.
Greater London was a major beneficiary of the technology and financial services investment boom in 2023, becoming the leading European region for investment. Greater London recorded 359 FDI projects in 2023, up 20% on 2022 and propelling the region to the top spot, replacing Île-de-France which recorded 300 projects.
“Foreign direct investment: UK’s total project amount grows as Europe’s falls” was originally created and published by The accountanta brand of GlobalData.
The information on this site is included in good faith for general information purposes only. It is not intended to amount to advice on which you should rely and we make no representation, warranty or guarantee, express or implied, as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
