House of Commons Library

Foreign Direct Investment into the UK

Published Friday, September 8, 2017

A debate will be held on Foreign Direct Investment into the UK in Westminster Hall on Tuesday 12 September at 9:30am. The subject for the debate has been chosen by Michael Tomlinson MP.

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EU countries accounted for 45% of the stock of FDI in the UK (£431 billion out of a total of £950 billion), compared with 27% for the USA and 28% from all other countries. The EU’s share of the stock of FDI in the UK fluctuated between 45% and 54% over the last decade; over the same period the USA’s share has fluctuated between 24% and 29%.

In terms of UK investment abroad, the EU accounted for 43% of the total UK FDI stock in 2015, compared to 23% for the USA and 34% for all other countries. The EU’s share of the stock of UK outward investment fluctuated between 52% and 41% over the last decade; over the same period the USA’s share has fluctuated between 16% and 24%

Net investment flows from foreign investors into the UK were £21.6 billion in 2015, up from £15.0 billion in 2014.

Inward FDI flows from the United States were £20.1 billion, the highest recorded value since 2011.

Inward FDI flows from Europe fell, with a disinvestment of £12.1 billion in 2015, compared with a disinvestment of £8 million in 2014.

Net direct investment earnings generated in the UK by overseas investors were £47.9 billion in 2015, down from £48.0 billion in 2014 and the lowest total since 2012. The EU accounted for £18.8 billion (39%) of these; the USA accounted for £17.5 billion (37%).

Commons Debate packs CDP-2017-0159

Authors: Dominic Webb; Matthew Ward

Topics: Economic policy, Economic situation, International trade

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