E&Y finds foreign investment fall
Foreign investment in the UK has dropped sharply in the first half of the year, according to a study by Big Five firm Ernst & Young.
The data revealed in Ernst & Young’s European Investment Monitor, shows a sharp decline in inward investment since the 1998 peak when 641 projects were announced, compared to 197 in the first half of this year.
In the first six months of 2001, 21% of Europe’s inward investment projects were based in the UK, compared to 12% in France, it’s nearest competitor.
Although this still made the UK the highest recipient of inward investment projects in the Europe, the number of project announcements has been falling steadily, dropping below 200 for the first time since 1997.
The drop was based on declining telecoms and software investments following the dotcom crash. In the first half of 2001 countries across Europe were also victims of a drop in US outward investment caused by the economic slowdown in that country.
Ernst & Young consultant Mark Hughes said: ‘The UK’s share of inward investment has consistently dominated announced project figures for many years. Britain punches above its weight in Europe in per capita terms.
But, he said: ‘Over the last two years, the UK’s market share has shown a slight but persistent decline.’
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