UK remains top hotspot for foreign capital

Tuesday, 3 February 2004 5:19 AM

The UK was the top destination in Europe for foreign investment during 2003, according to a new report.

The IBM's Global Investment 2003 report estimated that more than 55,000 jobs were created in the UK due to overseas investment.

Investors were attracted to the UK because of competitive cost levels, flexible labour laws, and its native English-speaking workforce.

15 per cent of all new jobs in Europe were created in the UK, putting Britain ahead of the Czech Republic, Germany and Russia in terms of favoured destinations for foreign capital.

Roel Spee, IBM business consultant, said the UK was well-positioned to remain No 1 in Europe for some years.

But the balance between eastern and western Europe was in "flux," with many western countries losing out to newcomers.

"The UK has been the dominant country for a long time," Mr Spee said.

"It has a number of strong points for investors - its cost levels are very competitive and its flexible labour laws are another traditional strength.

"It is also helped by the fact that English is the number one corporate language," he added.

Globally, investors would rather invest in the US than anywhere else. Britain was in fourth place.

IBM said more than 1.3 million new jobs were announced worldwide in 2003, as a result of 11,000 new trans-national projects.

The US was the top country for manufacturing investment, as well as the car industry and chemicals, while China was No 1 for investment in the electronics industry.

Tags: