In a surprising turn of events, the U.K. emerged from recession with 0.6% growth in the first quarter of 2024, the fastest rate in two years. The country appears to be diverging from the rest of Europe, which according to the 2024 EY Europe Attractiveness Survey is facing significant challenges.
Our survey reveals that Europe’s foreign direct investment (FDI) fell by 4% compared to 2022 and is now 11% lower than before the pandemic. While the U.K. is defying this trend, the rest of Europe is experiencing a real decline, with France and Germany seeing their FDI-supported projects decrease year-on-year in 2023, despite maintaining their status at the top of the European investment league table. Given that foreign investment increased in other parts of the world during the same period, these figures should worry European policymakers.
