The UK’s decision to exit the EU has created significant uncertainty within the corporate world. Investors now face years of uncertainty over what trade deals might emerge, what access to European markets will be maintained and many other business-critical issues.
The UK remains the top-ranking destination in Europe for foreign direct investment (FDI) by a long measure, capturing 22% of all greenfield investment into Europe in 2016. But the announcement of the referendum in early 2016 triggered a year of doubt, with figures from Financial Times data service fDi Markets showing greenfield FDI projects (i.e. new physical presence or facility in the UK or expansion of existing facility by a foreign company) into the UK declining 19% and estimated capital investment dropping by as much as 38% in the year following the vote.
Overall greenfield FDI into the UK
Investment from steadfast ally the US held mostly stable with a slight decline in the number of FDI projects in the UK between July 2016 and June 2017 compared with the same period of 2016 and an increase in capex from $8.6bn to $8.9bn – showing the close links between the two countries might help offset Brexit-related turbulence in the eyes of American investors.
