UK number one destination in Europe for inward investment

The UK was the number one destination for inward investment in Europe in 2007, attracting over one trillion dollars, according to a report published by the United Nations today. Globally, the UK was second only to the US.

[…] Once again, the UK has been ranked as the most attractive destination for inward investment anywhere in Europe

Lord Digby Jones

UK Trade and Investment Minister

The United Nations Conference on Trade and Development’s (UNCTAD) World Investment Report noted that in 2007, the UK attracted and retained US$1,347 billion of foreign direct investment (FDI) stock - a record figure.

UK Trade and Investment Minister, Lord Digby Jones of Birmingham, said:

“These are excellent figures. Once again, the UK has been ranked as the most attractive destination for inward investment anywhere in Europe. 2007 was a record year, and we broke the trillion dollar threshold for the second time in a row.

“This year, the expectation is that the worldwide slowdown, including the twin global shocks of the credit crunch and rising energy and food prices, will hit investment. However, the 2007 figures are recognition of the fact that foreign businesses who want to do business overseas find the UK an ideal destination.”

The World Investment Report said that in 2007, the stock of inward foreign direct investment (FDI) into the UK was US$1,347 billion, an increase on the 2006 figure of US$1,133 billion.

Globally, the US was ranked first, followed by the UK in second place. The US attracted US$1,789 billion.

In Europe, the UK had the most inward FDI stock. France was in second place with US$1,026 billion.

In 2007, the flow of inward FDI into the UK was US$223 billion, an increase from 2006 figure of US$148 billion. Much of this was due to merger and acquisitions activity in the first two quarters.