UK 'most popular' for FDI

News Article - 05 October 2006
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The UK's position as the leading recipient of foreign direct investment has continued, although the country fails to retain market share, according to a new report.

Ernst and Young's European Investment Monitor 2006 found that the number of investment projects begun during the first six months of this year rose from 236 to 315, representing a 30 per cent increase on the same period last year.

Generally, Europe's inward investment has improved, prompted by a large rises in projects from the United States and India.

The report reads: "This rise in projects also reflects the strength of the global economy and the growth in attractiveness of the European market, with the economies of the Baltic, Central Europe and the east not only providing lower cost locations for production but also representing increasingly important consumer markets in their own right."

Both the software and business divisions appear strong and growth has been experienced in industries such as machinery and chemicals, with the software sector having dominated foreign direct investment in Europe for the last eight years.

Ernst and Young's regional development director Nigel Wilcock told Accountancy magazine: "London in particular has really benefited from this upsurge in activity, announcing more projects – 133 – than every European country in its entirety except France."

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