The UK is the second most tasty nation for funding behind the US, signalling a climb up the rankings, in keeping with an annual survey of worldwide enterprise leaders by the consultancy PwC.
Revealed in the beginning of the World Financial Discussion board (WEF) within the Swiss ski resort of Davos, the survey of just about 5,000 chief executives from 109 nations places the UK in second place, forward of China, Germany and India.
That marks the very best rating for the UK within the survey’s 28-year historical past – up from fourth in 2024 – and seems to belie a number of the gloom that has hovered over the economic system in current months.
Commenting on the survey, the chancellor, Rachel Reeves, stated: “These newest outcomes present international CEOs are backing Britain and the UK is among the most tasty locations for worldwide funding. And it’s this funding that may assist drive financial development and enhance dwelling requirements throughout the UK.”
Reeves will journey to the Davos summit herself, participating in a collection of occasions on Wednesday and Thursday geared toward highlighting the UK as an funding accomplice. The enterprise secretary, Jonathan Reynolds, will even attend.
The chancellor is ready to satisfy enterprise leaders together with the JPMorgan Chase chief government, Jamie Dimon, and Jo Taylor, president of large Canadian pensions fund the Ontario Lecturers’ Pension Plan.
Reeves stated: “Enterprise leaders and buyers must know that the UK is the place their companies will flourish, so I’m assembly them nose to nose in Davos to make our case.”
The UK was singled out by 14% of the chief executives surveyed by PwC because the vacation spot for many forthcoming capital funding, behind the US, talked about by 30%.
Germany (12%) and China (9%) have been the subsequent two economies in line. Germany is battling recession as an election looms, whereas the outlook for China is especially unsure, given Donald Trump’s plans for sweeping new import taxes.
Marco Amitrano, senior accomplice of PwC UK, known as the findings, “a vote of confidence within the UK as a spot for enterprise and funding”.
He added: “The UK’s relative stability at a time of instability shouldn’t be underestimated, nor ought to its energy in key sectors together with know-how. Nevertheless, there is no such thing as a room for complacency.”
Final week the Worldwide Financial Fund upgraded its forecast for UK development this 12 months to 1.6% from an earlier forecast of 1.5%, pushed by Labour’s elevated funding spending, improved family funds and a collection of anticipated rate of interest cuts by the Financial institution of England.
Ministers hope the actual fact the federal government has a safe majority, in contrast to main EU economies equivalent to Germany and France, which face political instability, will enhance the UK’s attractiveness as a protected haven for funding.
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Reeves has come underneath criticism from some enterprise foyer teams after her October finances imposed a £25bn enhance in employer nationwide insurance coverage contributions.
Some corporations have additionally raised issues about elements of the federal government’s employment invoice, geared toward boosting staff’ rights.
The Treasury restated Reeves’s dedication to assembly her self-imposed fiscal guidelines earlier this month after a tumultuous few days on bond markets that risked elevating the price of borrowing for the federal government.
Nevertheless, a lot of the transfer was reversed by the top of final week, after decrease than anticipated inflation figures opened the best way for the Financial institution of England to chop rates of interest.
This 12 months’s Davos summit will happen within the shadow of Donald Trump’s inauguration. The brand new president will tackle the gathering by video-link on Thursday.
Greenpeace protestors blocked delegates arriving at a Davos heliport on Monday. Clara Thompson, Greenpeace spokesperson in Davos, stated: “It’s an outrage that politicians, CEOs and the highly effective elite collect at Davos to debate endlessly on international challenges whereas the world is burning and folks battle with assembly fundamental wants and coping with worsening local weather impacts.
“There’s a approach ahead: the super-rich should pay their justifiable share of taxes. There’s no lack of cash to handle the local weather and environmental and social disaster, it’s simply within the mistaken pockets and it’s time to make wealthy polluting elites pay.”
