June 8, 2010. The UK retained its position as the most attractive destination for inward investment in Europe in 2009, according to Ernst & Young’s latest European Attractiveness Survey published today. The 8th annual report, which examines figures for international investments into Europe, new projects or expansions, revealed that overall Europe remained open for business in 2009. Despite the economic downturn, the region still secured 3,303 investment announcements, down from 3,718 in 2008, a modest 11% decline. The number of jobs created was 124,923, down from 148,333 in 2008, continuing a downward trend that began in 2004.
Ernst & Young’s study analyses both actual inward investment over the last 12 months and attitudes of global investors regarding their plans over the short to medium terms. Retaining its ranking as the most popular European location for Foreign Direct Investment (FDI), the UK attracted 678 investment projects in 2009 – just 1% less than in 2008. These projects produced 20,017 jobs, ranking the UK as the number one European location, with 16% of the total jobs created across Europe by FDI. The largest investor in the UK was the US (243 projects), followed by France (50), Germany (49) and India (38).
The UK’s continuing strength in financial services underpinned its receipt of 30% of business service projects, 36% of software projects and 27% of financial service projects in Western Europe. Together, these sectors secured 42% of the jobs created in the UK. The study also highlights London’s consistent popularity, with the UK capital retaining its position as the most attractive city for inward investment in Europe in 2009 for the eighth year in a row. London secured 263 projects, two more than in 2008, far outperforming its closest European city rivals. Paris was next in the rankings with 99 projects (a fall from 124 projects in 2008) and Madrid third with 55 (a fall from 69 in 2008).
