Boosting post-Brexit appeal in Asia-Pacific is key UK goal

ONE of the central claims of many Brexiteers has long been that leaving the European Union will significantly enhance the United Kingdom’s global economic attractiveness. Yet, a UK government review has recently concluded that there is a growing, £50 billion (S$84 billion) investment gap per year between the UK and other advanced nations.

The eye-catching £50 billion number comes from the fact that many of the UK’s competitor economies generate around 12 per cent of gross domestic product (GDP) in business investment (both domestic and foreign), whereas the counterpart figure for the UK is around 10 per cent. So the potential prize is a big one, as Richard Harrington, who led the government review, rightly highlights.

The stark facts are that foreign direct investment (FDI) into the UK fell in value every year since the Brexit referendum, from 2016 to at least 2021. This saw the country dropping down the OECD rankings for FDI flows, from 12th place in 2015 to 20th in 2022.