Inward investment – not quite as good as the Minister makes out
UK Trade and Investment published their annual report on Inward Investment today. In his foreword, the Minister, Lord Green, points to the world’s highest stock of inward investment, which is fair enough. But he also boasts about “investment flows in 2011 amounting to US$53.9 billion, an increase of 7 per cent”, which set off alarm bells. It isn’t those numbers, which are accurate, so much as the failure to mention how the rest of the world is doing. After all, the whole world is recovering from a global recession, so you’d expect similar results around the world.
So I went back to the data from the UN Conference on Trade and Development. And what do you know, several large industrialised nations have done better than the UK in terms of increasing inward FDI:
Italy is a bit of special case, but France and Belgium seem to have done pretty well for Euro Zone economies when you remember that our government blames the Euro for all our problems.
And when you look at that £53.9 billion of inward investment, not only have several other countries done better, the UK’s ranking in the world inward FDI table actually slipped a couple of places last year:
The UK is a great place to invest and businesses recognise that – as they have done for quite some time. Lord Green really didn’t need to over-sell his statistics.
(Hmm … now where did I hear that name before?)