Foreign investment into Europe creates more jobs for the UK
According to a recent Ernst & Young’s survey, despite the economic crises, the UK remains the top recipient of Foreign Direct Investment (FDI) in Europe, which has resulted in more projects, which in turn created thousands of new jobs last year.
According to Ernst & Young’s ‘European Attraction Survey’, which interviewed more than 800 global executives on their views about how and where global investment will take place in the next decade, there was only a moderate 3% reduction in FDI project numbers down from 3,906 in 2011 to 3,797 in 2012.
However, investment levels still remain higher than pre-crisis levels and the number of jobs created was up by 8% on 2011 to 170,434.
Marc Lhermitte, Ernst & Young’s Head of International Location Advisory Services and author of the report said, “The crisis has led foreign investors to actively pursue scarce opportunities and restructure their manufacturing presence in Europe.
“Consequently, we have in fact witnessed an investment rebound in key destinations including the UK, Germany and Ireland, but also in Poland and Russia. Foreign investors are for the most part confident that Europe will weather these hard times, and emerge stronger and different.”
The survey also revealed that the FDI projects created in the UK produced around 30,000 new jobs in 2012, with the US remaining Europe’s single leading FDI generator, accounting for 1,045 (28%) inward investment projects in 2012 mostly in the business services and software sectors. The UK continued to be the favourite destination for American companies in Europe.
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