LONDON, Jan 15 (Reuters) – Britain has moved up the rankings as a destination for new foreign direct investment, helped by growth in artificial intelligence and clean energy, but needs to do more to attract other types of investment, consultancy McKinsey said.<\/p>\n
The United Kingdom was the world’s third-largest destination for newly announced FDI projects between 2022 and 2025 – behind the United States and India, up from fourth place in 2015\u201319, McKinsey said in a report published on Thursday.<\/p>\n
Sign up here.<\/a><\/p>\n Inflation-adjusted inflows averaged about $85 billion a year, 40% higher than before the COVID-19 pandemic and stronger than a 20% increase in global announced FDI, it said. By comparison, France and Germany attracted averages of $45 billion and $43 billion.<\/p>\n Britain’s government has said it wants to attract more foreign investment as part of its push to speed up the country’s weak productivity and overall economic growth.<\/p>\n McKinsey also said:<\/p>\n Much of Britain’s new FDI is concentrated in clean energy and AI deals worth more than $1 billion each with relatively little flowing into advanced manufacturing in areas such as batteries for electric vehicles and semiconductors;<\/p>\n Around 80% of announced inflows to Britain came from Europe and the United States with Britain at risk of missing out on investment from the Gulf, South Korea, Taiwan and elsewhere;<\/p>\n Announced FDI in fossil fuels in Britain fell by around 80%compared with a decline of around 30% globally, possibly reflecting increased taxes on oil and gas companies.<\/p>\n Writing by William Schomberg; editing by David Milliken<\/p>\n Our Standards: The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n