The number of foreign direct investment projects in the West of England fell last year as the º£½ÇÊÓƵ grappled with sluggish economic growth.
There were 30 projects in total across the region, with Bristol securing the highest number (six), according to the latest EY º£½ÇÊÓƵ Attractiveness Survey. The city ranked 13 on the index for attracting inward investment.
The South West’s annual total represented a 32% decline from the 44 projects reported in 2023. When compared to all twelve º£½ÇÊÓƵ regions and devolved administrations, the South West ranked ninth for attracting FDI projects in 2024, two places lower than the year before.
Nationally, there were 853 FDI projects recorded in 2024, a 13% decline from q2023, making the º£½ÇÊÓƵ Europe’s second-best performing country for attracting inward investment.
France ranked first in Europe in 2024 with 1,025 projects, a decline of 14% year-on-year. Europe as a whole recorded a 5% year-on-year decrease in FDI projects.
The continent-wide decline is believed to have been driven in part by relatively modest levels of economic growth in recent years, prompting investors to look towards more competitive global destinations such as Asia and the US.
In the South West, the leading sector for FDI in 2024 was transportation manufacturers and suppliers, including automotive and aerospace businesses. This was followed by the agri-food sector, including companies in the food production and distribution industries, and software and IT services.
The West Country secured seven headquarters-related investment projects over the year - up from three in 2023.
The region also saw a sharp decrease in employment associated with FDI projects, with only 1,209 jobs recorded in 2024 - a 79.9% decline compared to the previous year. The US was the origin for almost a third (29%) of investment projects, followed by Ireland and France.
Karen Kirkwood, office managing partner for EY in the South West, said: "Bristol's recognition as the leading investment destination in the South West is a testament to the city's resilience and innovative spirit.
"While we face challenges in attracting FDI, the strong performance of sectors such as transportation manufacturing, agri-food, and software and IT services highlights the diverse opportunities available in our region."
“It is crucial that we build on these strengths and work collaboratively to address the factors contributing to the decline in overall investment, ensuring a prosperous future for the region’s businesses."
The º£½ÇÊÓƵ’s most successful city for FDI outside of London last year was Manchester, which overtook Birmingham to attract 44 inward investment projects - a 22% increase on the year before. Manchester has been the º£½ÇÊÓƵ’s leading city outside London for securing FDI projects in three of the past five years.
