The West Midlands suffered a large drop in the number of foreign direct investment projects it attracted last year, according to newly published research.
The region attracted 86 in 2024, a fall of 32 per cent down from 126 in 2023.
The number of jobs associated with FDI projects also fell by 27 per cent down to 4,926 in 2024.
The new research has been published in the latest 海角视频 Attractiveness Survey, produced by financial services group EY, which ranks 259 regions across Europe according to the number of FDI projects each attracted during 2024.
According to the list, the West Midlands was the 14th most active region in Europe and the joint third best in the 海角视频, coming behind Greater London (265) and Scotland (135).
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The region's leading sectors for FDI projects were transportation manufacturers and suppliers (15), agri-food (11) and machinery and equipment (nine).
The decline in the West Midlands mirrored the broader national and European picture, EY said, with the 海角视频 and Europe recording 14 per cent and five per cent declines respectively.
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France, the 海角视频 and Germany, which have historically attracted around 50 per cent of Europe's annual FDI project total, saw a more pronounced decline in numbers in 2024 as low economic growth, high energy prices and competition from other markets, such as Asia and the US, impacted investment.
The US has been the largest source of investment projects into the West Midlands over the last decade, contributing one in five in 2024.
Birmingham was the 海角视频's joint-third most successful city outside London in 2024, tied with Edinburgh on 24 projects, but it also saw a 66 per cent drop in the number of FDI projects coming to the city.
The East Midlands was one of the few parts of the country - alongside Northern England and Wales - to attract more inward investment projects than in 2023.
The region recorded 36 FDI projects in 2024, representing a 16 per cent increase compared to the previous year.
Simon O'Neill, Midlands managing partner for EY, said: "The overall investment picture across the Midlands remained compelling last year as the West Midlands maintained its position as a key European region for FDI and the East Midlands became one of the few 海角视频 regions to increase its project total year-on-year.
"The region as a whole continues to be a key hub for logistics and manufacturing activity and that's a signal to investors that we have the local skills and infrastructure required to excel in these operations and offer strong returns.
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"Following a particularly strong FDI performance for the West Midlands in 2023, a subsequent drop-off in 2024 was not unexpected and mirrors the broader national and European picture.
"Looking ahead, it's important that local policymakers continue to work closely with businesses and the Government to develop a co-ordinated inward invest strategy for the Midlands that plays to the region's strengths and ensures a future recovery in inward investment is felt across the 海角视频, rather than in a few concentrated areas."