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Is investment in the UK really affected by Brexit?

David

January 30, 2020

Is investment in the UK really affected by Brexit?

Our Industrie & Strategies database on global industrial investment tracks domestic and foreign investments of over $30 million. Our results are limited because the financial sector is assumed to be more affected than others in general commentary on the Brexit. On the other hand, we have been gathering information since 2016, when the Brexit was already a very important factor for investors.We have made a comparison between the UK, France and Germany on the number of investments and the share of direct investments abroad since 2016.The results do not seem to be seriously damaging to the UK economy, but do however produce a certain effect.In all 3 countries, the number of investments is falling, the rate is slightly higher for the UK. The 2nd graph shows that this decline does not affect foreign investors leaving the UK (the share of FDI is rather stable). So it's more likely to be a status quo attitude affecting both domestic and foreign investors than FDI leaving the country en masse. It will be some time before we see whether the UK regains its top position.

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