2024-05-07 21:37:45
Foreign investment in the UK financial sector fell by half last year, the City of London said.
As Day.Az reports with reference to RBC, such data are provided by Reuters.
Last year, investment amounted to £1 billion ($1.25 billion). In 2022, it was equal to £2 billion. The reduction in the kingdom’s main financial center was explained as a blow to sentiment against a tough economic background.
The largest source of funds was the United States (40% of funds, 222 projects, 7 thousand jobs). The most common investments were in investment management companies.
City of London head of policy Chris Hayward said a more strategic approach was needed to increase investment.
Reuters notes that investment in London’s financial sector was influenced by competition from New York, as well as Paris and Amsterdam – the latter two banking centers became more active after Britain left the EU (Brexit, the country officially left the union in 2020).
Last year, the City of London lost its sole status as a major financial center for the first time in history. In the corresponding ranking, it shared first place with New York, according to a study conducted at the initiative of the governing body of the business district of the British capital – the City of London Corporation. Next came Singapore, Frankfurt, Paris and Tokyo.
The Financial Times also cited Brexit as one of the factors in the loss of the City’s sole leadership. Because of it, some corporations were forced to move their headquarters within the EU. In addition, many companies began to prefer listing on US exchanges to the London Stock Exchange.
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