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Foreign Investment in the UK Has Declined Sharply In Recent Years.

Comments (0) Economy News, Financial News, World News

Foreign-Investment-in-the-UK-Has-Declined-Sharply-In-Recent-Years

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New information from the Department for International Trade proves that investment in the UK by overseas firms has declined sharply in a few years. The number of new projects in the UK cut down 14% in 2018-19. At the same time, there was a 24% drop in the number of jobs created. In the last financial year, 75,968 new jobs were created. But in the financial year just finished, that number cut down to 57,625, the lowest level for seven years.

There was an even sharper drop in the number of existing jobs that have been protected by further investment in the UK. It would, however, be very hard to understand that foreign direct investment in the UK was declining from the Department for International Trade’s own news release about these figures. Nowhere does it refer to that investment is declining or fewer jobs being created. Instead, of finding which regions of the UK are doing good while pointing out that the UK remains the number 1 European destination for foreign investment and is the number 1 destination in the globe for US investment. Even if that is all correct, the UK is facing growing competition from countries such as Ireland, France, and Germany, and the number of businesses setting up sites here has been in turn down since 2014-15 when almost 85,000 new jobs resulted.

Brexit uncertainty

These figures tie in well with data on investment in the UK by British organization, which shows many are putting off spending decisions, a move that the governor of the Bank of England, Mark Carney, held responsible for continued insecurity over Brexit.  Also, while in the past much foreign organization such as Japanese carmakers, open shop in the UK to increase access to the EU’s single market; it is now far from certain that frictionless access to the rest of the EU will last past 31 October, when the UK is unpaid to leave the EU. There has, however, been an increase in the number of British businesses bought by overseas organizations, which rose by 8%.

 That is probably losing to a combination of factors. Many international organizations are listed on the UK stock exchange and so a high amount of mergers and acquisitions happen in the UK, even if they do not engage UK companies. In the meantime, the drop in the value of the pound has made it much cheaper for foreign companies to buy things in the UK

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