Overseas investment falls in UK
Tuesday 19 December 1995
British firms invested three times as much overseas in 1994 as foreign companies invested in the UK. There was a particularly sharp fall in direct investment into the UK from companies in North America.
Total investments overseas are calculated by the Central Statistical Office to have amounted to pounds 18.5bn, pounds 2bn more than its earlier estimate. Meanwhile, the CSO has revised down its estimate of inward investment by pounds 500m to pounds 6.1bn.
The geographical breakdown for 1994, available for the first time, shows that the US continues to be the country attracting the most investment from the UK. In 1994, it accounted for 28 per cent of total investment. The next largest recipient was the Netherlands, with 13 per cent, followed by Australia with 10 per cent.
British companies stepped up their overseas investments in 1994 by almost pounds 2bn. But the big increase was to countries outside the European Union and North America, where direct investment by British companies almost doubled. The increase to Latin America was particularly marked. By contrast, investment to the EU fell 10 per cent and to North America by 32 per cent. Inward investment fell over a third to pounds 6.1bn, its lowest since 1986. In 1989 and 1990, it was running at three times that level.
The geographical breakdown showed investment from North America plunging from pounds 5.2bn in 1993 to pounds 1.8bn. However, investment from countries in the EU rose from pounds 1.7bn to pounds 3.3.bn.
In the first half of 1995, British companies have again increased their investments overseas, which are running at an annual rate of pounds 23bn.
However, there has been a recovery in inward investment, which is running at an annual rate of pounds 14bn.
The importance of sustaining such a recovery is not in doubt. According to the DTI, 40 per cent of manufacturing exports come from foreign-owned enterprises. Overseas companies account for 18 per cent of all manufacturing jobs and a third of net capital expenditure.
The problem Britain faces is one of increasing competition. Other countries in the EU are making much more active efforts to attract inward investment and the EU itself is facing competition from central and Eastern countries.
According to Regions of the New Europe, a study by Ernst & Young, 20 per cent of investment in Europe is being directed to countries of the former Eastern bloc.
- 2 #NotGuilty: Second Oxford student writes of brutal rape by two men who then threw her in a bin as part of campaign against victim blaming
- 3 How the language you speak changes your view of the world
- 4 Russell Brand backs Ed Miliband: 'You gotta vote Labour'
Lucy Hawking: Stephen Hawking's daughter writes impassioned open letter to Katie Hopkins about rights of disabled people
Indonesia executions: Death row British grandmother Lindsay Sandiford will refuse to wear a blindfold when she faces firing squad
Oxygen-starved 'dead zones' with no marine life up to 100-miles long discovered in the Atlantic Ocean
Russian warships accused of 'chasing away' Swedish vessel to prevent Baltic States from achieving energy independence
How the language you speak changes your view of the world
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: SNP and its activists 'openly racist' towards the English, Farage says
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
Schools forced to act as 'miniature welfare states' with teachers buying underwear and even haircuts for poor pupils
iJobs Money & Business
£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...
£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...
£16000 - £18000 per annum: Recruitment Genius: An Online customer Service Admi...
£18000 - £22000 per annum: Recruitment Genius: This global, industry leading, ...