The UK is swiftly positioning itself as a leading destination for foreign investment, with strong growth projections set to outpace other G7 nations by the next general election.
Foreign direct investment (FDI) is surging, placing the UK as the second-highest in Europe for FDI projects—just behind France and ahead of Germany.
This remarkable growth is being driven largely by a resurgence in the digital sector, with the UK securing over a quarter of all European tech projects in 2023.
However, it’s not only technology benefiting from this wave of investment; industries such as machinery and equipment, transportation and logistics, and health and social care are also experiencing notable increases in FDI, with project numbers surpassing the decade’s average.
London: The epicentre of economic growth
At the heart of this investment boom is London, where FDI projects rose by 20% in 2023 compared to the previous year, propelling Greater London to the top of the European rankings for investment performance.
Forecasts indicate that by 2030, London’s economic output could eclipse major global cities like New York, Paris, Berlin, and Hong Kong.
A strategic opportunity for foreign investors
The UK’s appeal to foreign investors is set to grow further, with the Bank of England expected to reduce interest rates later this year, lowering the cost of borrowing.
This comes as the Government is actively encouraging global investment through a pro-business environment that fosters innovation and expansion.
For businesses looking to expand or establish a presence in the UK, the current conditions offer a unique opportunity.
A combination of a strong economic outlook, lower borrowing costs, and an ongoing commitment to innovation make the UK a compelling destination for foreign investment.
Now is the time to act—contact us to explore how we can support your business in navigating this dynamic and thriving market. Don’t miss the chance to capitalise on the opportunities ahead.