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UK 'top destination for foreign investment'

3rd June 2010

The UK remained the most attractive European destination for inward investment during 2009, new research has shown.

Ernst & Young's latest European Attractiveness Survey found Britain won 678 foreign direct investment (FDI) projects last year, out of the 3,303 that were recorded across the whole region.

The report also showed that the US was the largest investor in the UK with 243 projects, while France established 50, Germany 49 and India 38.

In addition, London was the leading European city for inward investment, with its 263 projects far exceeding the 99 established by its nearest rival Paris.

James Close, a partner at Ernst & Young, commented: 'When seen in the context of 12 months during which the European economy suffered a deep recession, the resilience of the UK in securing FDI is a remarkable economic success story.'

The expert also suggested that Britain remained a popular destination for investment because of London's position as a hub for business and financial services, as well as its close relationship with the US.

Last year, Mr Close predicted that inward investment in the UK would remain strong despite the recession, as it is seen as a good country for research and development activities, green industries and telecommunication projects.

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