In 2023, the UK was the top destination for foreign direct investment (FDI) in Europe, with a focus on digital technology. Despite a decline in project numbers across Europe, the UK remained the leading sector for FDI and contributed to its overall growth. The country recorded 255 digital technology projects, marking an 8.9% increase from the previous year. This accounted for over a quarter (26.7%) of all digital tech FDI projects in Europe during that time.
France came in second for digital technology FDI projects with 135, followed by Germany with 119 projects. However, it was the UK that stood out as a leader in attracting digital technology FDI projects in 2023. The country faced challenges in the tech sector in 2022 due to high interest rates and global contraction, but conditions improved slightly in 2023. Despite tighter borrowing conditions, companies prioritized investing in more established and resilient tech markets like the UK.
Peter Arnold, EY’s UK Chief Economist attributed the UK’s FDI growth in 2023 to a resurgence in digital investment. While Europe saw a decline in tech projects, the UK stood out with its increase in digital technology projects. This showcases its strength in the tech sector and its attractiveness to investors, highlighting its position as a leading destination for foreign direct investment (FDI) in Europe last year.
