23 May 2017
UK ‘risks losing foreign direct investment top spot’
Britain's departure from the EU could cast a shadow over its status as Europe's top destination for foreign direct investment (FDI), a report has warned.
Accountancy group EY said the country managed to hold onto the top spot last year, with 1,144 FDI projects recorded - a 7% rise.
But the outlook for the coming three years appears cloudier, with 31% of investors predicting that the UK's attractiveness for FDI deals could decline.
Another 9% of investors have indicated that Brexit could force them to move their investment plans to the continent.
Mark Gregory, chief economist at EY, said investors in Western European are twice as negative as Asian and North American investors.
He added: " Decisions on the majority of investments made in 2016 would have been made up to three years ago, which helps to explain the UK's solid performance last year, but signs of a slowdown are on the horizon."
However, the study also found that 32% of investors are still confident that Britain's attractiveness as an FDI destination will increase over the coming three years.