Foreign investment in Britain soared to a record 2,213 projects for the year to April 2016, up 11% on the previous year.
Data from the Department for International Trade revealed that the UK is the most popular location in the EU for overseas firms. Foreign-backed projects helped create 82,650 jobs, safeguarded over 30,000, and significantly boosted economic growth.
International Trade Secretary Liam Fox was quoted by the BBC as saying: “These impressive results show the UK continues to be the place to do business.
“We’ve broadened our reach with emerging markets across the world to cement our position as the number one destination in Europe for investment.”
The biggest source of inward investment came from the US, backing 570 projects, followed by 156 projects backed by Chinese companies and India accounting for 140 projects.
Projects funded from Latin America rose by 240 percent and East European investment increased 131 percent.
The UK has been seen as an attractive location for foreign companies to invest in because of a transparent regulatory system making it easier to do business, a simple and competitive tax rate system, people with the talent and right skills, the use of English and membership of the EU.
Simon French, chief economist for Panmure Gordon, said: “What will be far more important than Brexit will be whether the political forces that shaped the vote to leave also put pressure on the UK to be a more closed/protectionist nation. This would have much larger (negative) ramifications for future inward investment flows.”
Employment growth in the UK is above average
According to the Confederation of British Industry, employment growth in both business and consumer services remained above average in the three months to August, while investment plans are back in line with long-run averages.
“Whilst the service sector has been rocked by the stormy waters of Brexit, especially when it comes to firms’ sense of optimism, the actual slowdown in growth on the office and shop floor has been relatively modest,” said Anna Leach, the CBI’s head of economic analysis.
Economic analysis is the study of topics from the point of view of a statistician or economist.