According to an analysis by the London-based think tank the Institute for Public Policy Research (IPPR), which is based on data from the Organisation for Economic Co-operation and Development (OECD), the UK has ranked among the lowest of the G7 countries in terms of investments for 24 out of the last 30 years.
The latest comparable data from 2022 shows that private sector investments in the UK were lower than those in all other G7 countries for the third consecutive year. Additionally, the UK ranked 28th among 31 OECD countries in private sector investments.
Slovenia, Latvia, and Hungary attracted more private sector investment than the UK in terms of Gross Domestic Product. Only Greece, Luxembourg, and Poland had lower private sector investment levels than the UK.
The last period in which the UK attracted average levels of investment among G7 countries was in 1990.
According to the analysis, if the UK had been able to maintain its investment levels during this period, an additional $1.9 trillion would have been invested in the country.
The IPPR has called on the new government to be formed after the elections on July 4 to make new investments in critical areas such as electric vehicles, renewable energy, infrastructure, education, and health to promote growth.
George Dibb, Deputy Director of IPPR’s Economic Policy, stated that investments are the fuel of economies, emphasizing that “the UK’s poor productivity performance is the biggest reason for our low living standards. It is difficult to see improvements in the UK’s economic performance as resources flow into new investments. We know that public investments pave the way for the private sector. In this regard, the government needs to lead by developing a green industrial strategy and demonstrate to businesses that the UK is a safe, sensible, and stable place to invest.”
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Arwen Volkov, A graduate of the University of St. Gallen in Switzerland with a degree in International Finance, Arwen specializes in sustainable finance and green investments. She began her career at an investment bank in London, where she developed financing models for environmentally friendly projects. Known for her analytical and strategic thinking skills, Arwen is a sought-after financial consultant. In her spare time, she mentors fintech startups, contributing to their growth strategies. She is also a nature enthusiast and an amateur photographer.
