April 30, LONDON – According to the City of London, foreign investment in Britain’s professional and financial services will drop to one billion pounds ($1.25 billion) in 2023, despite the country’s continued status as a top travel destination.
In the capital markets, the industry is up against fierce competition, especially for listings from New York and, since Brexit, EU financial hubs like Paris and Amsterdam.
In an effort to minimize disruption from Britain’s exit from the EU, banks, insurers, and asset managers established new post-Brexit hubs in the EU, displacing about 7,000 jobs from the UK.
The City of London, which oversees Britain’s primary financial hub, claims that sentiment was negatively impacted by a harsher economic environment, with one billion pounds in 2023 being half of the “exceptional” two billion pounds of inward investment in the sector in 2022.
With over 40% of the funding for 222 projects totaling almost 7,000 jobs in 2023 coming from the US, this country accounted for the greatest share of funding sources.
According to the City, investment management companies accounted for 227 million pounds, or one-third of all investments made last year, and emerged as the main forces behind inward investment projects.
To boost inward investment, according to Chris Hayward, chair of the City of London policy committee, a more calculated approach is required.
“This starts with creating a hub to showcase our offer to the world, alongside a strong financial services strategy,” Hayward stated in a statement.
$1 equals 0.7989 pounds.