UK Witnessed Collapse in Foreign Investment

UN data showed that the United Kingdom has witnessed a collapse in foreign investment over the past two years, indicating a decline in its attractiveness as a destination for global trade following its exit from the European Union.

Bloomberg news agency said that total foreign investment in 2021 was negative, meaning that foreign companies took more investment out of the UK than they put in.

Flows rebounded throughout 2022, however, investment, which totaled $14.1 billion, was less than one-fifth of the average in the 3 years before the coronavirus pandemic.

The report, released on Wednesday, shows the impact on UK sentiment as both domestic and European firms adjust to new trading costs and barriers to curtailing their trade.

The sharp drop in investment in 2021 coincided with the outbreak of the Omicron option, prompting authorities to put in lockdown measures for most of the year.

Last year, France overtook the UK for the first time in 20 years in the number of new foreign investment projects, according to attractiveness network Ernst & Young in 2023.

Source: agencies