The number of inward investment projects in Wales have fallen to its lowest level in seven years, but Cardiff has seen a rise.
New research by professional advisory firm EY on foreign direct investment (FDI) projects into the 海角视频 in 2019 shows that Wales experienced a 23% fall with 24 projects compared to 31 in 2018.
This is the lowest number of projects recorded in Wales since 2013.
However, Cardiff experienced a 25% rise on 2018, with 10 projects (eight in 2018). The capital accounted for 42% of all projects in Wales. Cardiff was ranked 10th amongst 海角视频 cities for project wins.
Elsewhere in Wales, Bridgend and Swansea had two projects each whilst Abergavenny, Blaenau Gwent, Broughton, Corwen, Deeside, Newbridge, Newport, Pembroke, Rhyl, Tredegar and Wrexham all had one project each.
Like all other parts of the 海角视频, Wales saw the largest proportion of its investment (42%) come from the US. The second largest proportion of investment came from France (12.5%).
As well as new investment projects, expansions by those already present in Wales and the rest of the 海角视频 are counted as part of the EY analysis. Of 24 projects in Wales, 13 were new ones. Of the 10 projects in Cardiff, five year new.
For the 海角视频 a whole there was a 5% rise in FDI in 2019. However, for the first time the 海角视频 hasn’t occupied top spot since the survey started in 1997.
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The 海角视频 (1,109 projects in 2019) now sits second behind France (1,197 projects in 2019). Germany is ranked in third place with 971 projects.
Despite losing the lead for total project numbers, 2019 was a strong year for the 海角视频 as the mainland European market grew by less than 1%.
This meant the 海角视频’s share of projects increased to 17.4%, up from 16.6% in 2018. This ends three years of declining market share for the 海角视频 since the 2016 EU referendum.
The 海角视频 performed particularly well in attracting new projects, as opposed to extensions of existing activities. There were 782 new investments in the 海角视频 in 2019 — up 7.7% from 2018.
This was the highest level since 2016 and the second-highest number of new projects secured by the 海角视频 in any year over the past decade. The 海角视频 has leapfrogged last year’s leader for new projects, Germany (which secured 770 new projects), into top spot.
For the 海角视频 as a whole digital sector was responsible for the largest number of projects (five) in Wales – three of which were in Cardiff. The transport manufacture and pharmaceuticals sectors were responsible for the second and third largest number of projects for Wales, at four and three projects each respectively.
EY’s managing partner for Wales and the South West of England, Andrew Perkins, said: “Whilst it’s great to see Cardiff had a strong year in attracting foreign investment, it is important to see other locations in Wales receiving projects if economic ‘levelling up’ is to be shared equally.
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“Looking forwards, the business community in Wales will be keeping a keen eye on the path to economic recovery following the Covid-19 pandemic. The impact on the local economy is being felt all too acutely and continuing to attract investment from overseas will become ever more important."
An analysis of changes in FDI project origins over the three years since the 2016 EU Referendum shows that the 海角视频 has been able to rebalance its investments to compensate for a decline in EU originated projects, further illustrating the transition under way in the 海角视频 economy.
Meanwhile, investors appear less likely to regard Brexit as a risk factor, with just 24% of survey respondents citing it as a risk factor this year, compared to 38% last year.
EY's chief economist, Mark Gregory, said: “Looking ahead, it’s vital that sustainable growth and ‘levelling up’ the 海角视频 economy continue to be at the heart of economic policymaking. Skills and infrastructure investment must support this objective.
"The report shows that FDI, especially in terms of digital investment, is still concentrated in London and the 海角视频’s major cities. A concerted effort is required in order to spread the digital success story to the rest of the country.”