UK Ranked 2nd Most Attractive Country for Investment

According to a new survey of 4,701 CEOs from 109 countries, the UK is the second most attractive country for investment.

PwC’s 28th annual global CEO survey found that the UK surpassed Germany, China, and India, therefore becoming the second most important destination for investment after the USA.

A PwC press release stated:

“This is the first time the UK has secured this spot in the 28-year history of the survey.”

In the previous PwC survey, the UK was ranked fourth.

The UK is currently only behind the US in the survey, with 14% of global CEOs saying the UK will receive the greatest proportion of planned international capital expenditure.

The US leads the survey with 30%. Germany (12%), China (9%), India (7%) and the UK make up the rest of the top five.

It was found that 61% of UK CEOs anticipate economic growth in the next 12 months, up from 39% in 2023.

Marco Amitrano, senior partner of PwC UK and Middle East PwC, asserted:

“Our CEO survey findings are a vote of confidence in the UK as a place for business and investment.

“The UK’s relative stability at a time of instability should not be underestimated, nor should its strength in key sectors, including technology.

“However, there is no room for complacency.

“Reasserting Britain’s place on the global stage requires a tangible path to growth and a consistent government approach to business and investment.

“Business is playing its part – with two-thirds of UK CEOs developing new business capabilities or operating models in the pursuit of growth.”

The improved ranking of the UK will be welcome news for the Chancellor of the Exchequer, Rachel Reeves.

Reeves faced criticism for her October 2024 budget, which announced record tax increases. There have also been concerns over UK debt and government borrowing.

In response to the survey, Reeves said:

“These latest results show global CEOs are backing Britain, and the UK is one of the most attractive destinations for international investment.

“And it’s this investment that will help drive economic growth and improve living standards across the UK.”

Fears exist that her budget measures to hike wage costs for businesses will hurt hiring. Yet the survey showed that over half (53%) of UK CEOs plan to increase their workforces.

However, top bosses’ longer-term confidence in their own businesses has been knocked back.

Only 57% of UK CEOs feel very positive about their organisation’s prospects over three years. This is compared with 61% in the previous survey.

According to the PwC survey, generative artificial intelligence (GenAI) adoption by UK businesses has increased twofold since last year’s survey.

Ninety-three per cent of UK CEOs say their firms have adopted the technology to some extent, up from 42%.

UK CEOs are still ahead on GenAI adoption compared with their global counterparts. The adoption rate is 83%.

Prime Minister Sir Keir Starmer recently asserted that the government aims to become an AI “superpower”.

The ranking is a positive for the government and UK business.

However, as British citizens continue to struggle with the cost of living and public sector cuts, there is wariness.

Mohammed told DESIblitz: “Great for politicians and businesses; it makes people from outside more confident to invest.

“But what about me, my family and other normal people?”

“We continue to struggle; costs, taxes, and policies continue to pressure us.

“I’m still waiting to see the government care about all that, not just money and their bottom line.

“Will we see any benefits from this ranking and anything it leads to? I’m not sure.”