The UK remains second in EY’s annual ranking of European countries by their ability to attract Foreign Direct Investment (FDI) projects and was the only country in the top three to see project numbers increase year-on-year. France ranked first in Europe for the fifth consecutive year, while Germany followed in third place, according to the EY 2024 UK Attractiveness Survey. The UK was home to 985 FDI projects in 2023, which was a 6% increase from 2022.
UK’s FDI project total grows as Europe records overall decline
Europe as a whole recorded a 4% year-on-year decline with a total of 5,694 projects recorded in 2023. This was the continent’s lowest FDI total since 2020 and was 11% lower than its pre-pandemic level (6,412) and 14% lower than 2017 (6,653). 2017 represented Europe’s highest peak for projects in the last decade.
France was Europe’s largest recipient of inward investment, recording 1,194 FDI projects in 2023, however, this represented a 5% decrease on its 2022 project total. Germany recorded 733 projects in 2023, which was a decline of 12% on the year before.
The UK’s share of all European FDI projects grew to 17.3% in 2023, an increase on the 15.6% seen in 2022. However, the UK’s broader FDI trend mirrors Europe’s by recording a lower level of projects in the last four years in comparison to pre-pandemic levels. UK project numbers have remained below 1,000 since 2019 and there were 220 fewer projects recorded in 2023 than at the UK’s high point of the decade in 2017, when 1,205 projects were recorded.
Greater London was a key beneficiary of the investment growth in technology and financial services across 2023, becoming the leading European region for investment. Greater London recorded 359 FDI projects in 2023, which was a 20% increase on 2022 and moved the region into top position, replacing Île-de-France which recorded 300 projects.
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