UK investment levels lag behind peers

New analysis reveals that the UK has had the lowest inflow of new investment among the world's most advanced economies for three consecutive years. According to the Institute for Public Policy Research (IPPR), business investment by private companies in the UK was lower in 2022 than in any other G7 country.

The G7, comprising the US, Canada, France, Germany, Italy, Japan, and the UK, represents major global economies.

The IPPR's analysis, based on the latest datasets from the Organisation for Economic Co-operation and Development (OECD), highlights that the UK has consistently been at the bottom regarding business investment as a percentage of gross domestic product (GDP). This trend suggests that the UK is struggling to attract business investment compared to its international counterparts.

Furthermore, the report indicates that total investment across the entire UK economy, including contributions from the Government, corporations, and households, has remained weak. Data shows that the UK has had the lowest level of investment in the G7 for 24 of the last 30 years.

This ongoing issue has prompted leading political parties to sharpen their pledges to boost the economy and attract more investment.

Dr George Dibb, associate director for economic policy at IPPR, said:

"If the economy is an engine, then investment is its fuel. The UK's dire productivity performance is the single biggest driver of our dire living standards.

"Without resources flowing into new investment, it's hard to see how UK economic performance can improve."

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