Monday, January 16, 2023, 5:45 p.m
The world’s business elite are set to pump billions of pounds into the UK economy, defying expert predictions that the country is heading for its worst recession in a century, a new report published today reveals.
The share of more than 4,400 global CEOs in 105 countries surveyed by consultancy PwC identifying the UK as one of their top locations to invest has doubled in the past three years.
Now almost one in four business leaders want to grow their businesses in Britain more than anywhere else, up from just nine per cent in 2020.
It was China and the US that beat the UK in the table of global growth priorities. Germany is on a par with Great Britain.
The survey highlights that the UK remains an attractive place to do business despite experts warning it is headed for the deepest and longest recession among rich nations.
A sudden investment boom could actually mean that the country will avoid a recession or get out of any crisis fairly quickly.
“CEOs don’t expand and invest on a whim – they choose the UK because that’s where they expect returns,” said Kevin Ellis, chairman and senior partner at PwC UK.
Others pointed out that the survey shows that the UK is weathering the headwinds caused by the pandemic and the ongoing trade disruption caused by Brexit, with London leading the way.
“Despite the huge challenges of Brexit and the pandemic, it’s great to see the UK thriving and London maintaining its status as a global city,” said Claire Harding, director of research at the Center for London. The city of AM
“UK business leaders’ investment plans were stronger in December than at any time in the past six months, and it’s good to see this underpinned by growing confidence in the UK globally,” Kitty Ussher, chief economist at the Institute of Directors, told The city of AM
Recent data suggests that the underlying strength of the economy may be better than expected, strengthening the UK’s investment case. The weak pound has also made it cheaper to inject money into the country.
Last week’s data from the Office for National Statistics revealed that manufacturing rose a shock 0.1 percent in November, beating the consensus forecast for a 0.2 percent decline.
The PwC survey also found that more than one in five UK business bosses believe their company could fail in the coming years due to rapid technological displacement.
More than a quarter believe that climate change will lower their bottom line in the next year, according to the survey.