Britain is the number one destination for foreign direct investment (FDI) after a surge in inflow levels not seen since the financial crisis. FDI rose to US$253bn in 2016 up from US$33bn in 2015 according to the Organisation for Economic Cooperation and Development (OPEC).
Britain accounted for the bulk of the 17% increase of FDI into the EU climbing above Ireland, Switzerland, Holland and France to become the top destination for inward FDI across Europe and second only to the USA in the OECD top 35 richest economies.
The FDI inflows were driven by a number of mega deals, such as AB Inbev £79bn take-over of SAB Miller to create the world’s largest brewer, Shell’s £34bn acquisition of BG Group and Softbank’s purchase of ARM Holdings. Even with these deals excluded, Britain remained the top FDI destination in Europe.
Clearly a depressed GB£ has had some influence upon inward investment as UK assets are now relatively undervalued. However Britain also remains attractive for its underlying appeals.