Foreign investments in the UK are up by a record 31 percent |
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Wed, 29 Jun 2005 12:35
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LONDON: The UK witnessed a 31 percent increase in foreign investments in fiscal 2005, according to the DTI (department of trade and industry). This marks the biggest annual increase on record, says the department.
Foreign companies have invested in 1,066 projects during the year ended March 31 compared with 811 in the previous fiscal, creating 39,592 jobs, almost 55 percent more than the previous year.
The department did not provide the value of these investments, but according to a study by the Organisation for Economic Cooperation and Development (OECD) released last week, Britain had received £43.2 billion pounds ($78.5 billion) in foreign direct investment flows, making the country the second largest recipient of inward investment in the world, after the United States, which had a share of $107 billion.
Trade and industry secretary Alan Johnson said international comparisons continue to show the U.K. as Europe's top investment destination. "We must ensure that we retain our lead by adding value and exploiting technology," he said.
The department said the largest share of investment came from U.S. companies, creating 17,730 jobs in 464 projects. Canada comes second with 67 projects, Germany third with 60 and France fourth with 57. Emerging economies China and India too have invested in the U.K -- in 37 and 36 projects respectively --the department added.
The deaprtment also reported that 101 research projects were undertaken in the country during the fiscal, marking a 22 per cent increase from the previous year. Information technology and software projects (240) have shown a 61 per cent increase, while pharmaceutical and biotechnology projects (80) went up by 38 per cent.
The European Commission has predicted that Britain's $2.1 trillion economy will outpace the 12 countries that share the Euro in 2005. The economy has registered a growth of 2.8 per cent on average each year since 1997, while the entire Euro region will have only a 1.6 per cent growth.
OECD's report had revealed that foreign investments have shown a decline in Germany and France, in 2004.
Johnson said Britain's decision to stay out of the Euro has been justified. "The predictions of the death knell for inward investment in the U.K. have been proved wrong," he said.
British foreign secretary Jack Straw said the figures are indication that foreign investors have recognised the lead taken by the country in deregulating and opening up markets to international competition. "Our openness to investment and commitment to free trade are essential for our continuing prosperity."
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