The UK has claimed the position as the second most attractive country for investment globally, according to an annual survey by consultancy PwC, with the US taking the lead. This marks a significant rise for the UK, which ranked fourth in 2024. The survey, which canvassed nearly 5,000 CEOs from 109 countries, places the UK ahead of major economies like China, Germany, and India.
Published during the World Economic Forum (WEF) in Davos, Switzerland, this ranking represents the highest for the UK in the 28-year history of the PwC survey, reflecting a growing confidence in the nation’s investment climate despite recent economic concerns.
Chancellor Rachel Reeves expressed that the results indicate a global endorsement of the UK as a prime investment destination. Reeves, along with Business Secretary Jonathan Reynolds, is attending the Davos summit to strengthen these ties and promote the UK as a flourishing hub for business. The chancellor plans to meet with high-profile business leaders, including JPMorgan Chase CEO Jamie Dimon and Jo Taylor, president of the Ontario Teachers’ Pension Plan.
The survey showed that 14% of surveyed CEOs view the UK as the most attractive destination for investment, following the US at 30%. Germany (12%) and China (9%) ranked third and fourth, respectively. The positive outlook for the UK comes despite global uncertainties such as Germany’s ongoing recession and the uncertain future for China amidst potential trade tensions.
Marco Amitrano, senior partner at PwC UK, emphasized that the survey results reflect a strong vote of confidence in the UK’s business environment. He pointed to the nation’s relative stability amid global instability and its strength in key sectors like technology, although he cautioned that there is no room for complacency.
Economic forecasts are also optimistic, with the International Monetary Fund (IMF) upgrading the UK’s growth forecast for 2025 to 1.6%, up from an earlier estimate of 1.5%. This is largely attributed to increased investment spending, improved household finances, and expectations of lower interest rates from the Bank of England.
However, the UK government faces challenges as some business groups criticize recent budget measures, including a £25bn increase in national insurance contributions for employers. Despite this, recent inflation figures have allowed the Bank of England to consider interest rate cuts, providing some relief.
The UK’s growing attractiveness to investors comes as other economies like Germany and France grapple with political instability, positioning the UK as a stable choice for investment amid global economic uncertainty.
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