North East to benefit from shift in foreign investments

Elsa Tarring on the predicted rise of foreign investments in the North East

Elsa Tarring
1st December 2020
from Piqsels
Amid the uncertainty of COVID-19 foreign direct investment (FDI) has fallen sharply in the UK this year. However, in the North East FDI is predicted to rise.

The UK Attractiveness Survey from Ernst & Young (EY), a multinational professional services network, assesses the value of investing into the UK for foreign businesses. 

In this year’s survey, it was revealed that the UK “is well-placed to face the challenges presented by COVID-19” and that 32% of respondents intend to invest in the UK over the next year.

The survey also shows that manufacturing, healthcare and digital are the main areas in the UK that appeal to foreign investors, all of which are growing industries in the North East.

“COVID-19 may actually have stimulated investment activity in the manufacturing sector”

Mike Scoular, EY Newcastle managing partner

Therefore, while there was a 30-45% reduction in FDI projects in the UK compared to last year, the North East is likely to benefit from a rise in foreign investments.

Mike Scoular, EY’s managing partner for Newcastle, said: “This is a real opportunity for our region, which sees a significant proportion of its employment and [Gross Value Added] come from manufacturing”.

On the topic of the pandemic, he added: “COVID-19 may actually have stimulated investment activity in the manufacturing sector by accelerating technology adoption”.

Featured image: Piqsels

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