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Investment

Volume 507: debated on Tuesday 9 March 2010

To ask the Chancellor of the Exchequer what the level of (a) UK investment overseas and (b) foreign direct investment in the UK has been in each year since 2006; what proportion of investment in the UK was represented by foreign direct investment in each year; and what the level of investment in the UK was in each such year. (321121)

I have been asked to reply.

The information requested falls within the responsibility of the UK Statistics Authority. I have asked the authority to reply.

Letter from Stephen Penneck, dated 5 March 2010:

As Director General for the Office for National Statistics, I have been asked to reply to your recent Parliamentary Question asking what the level of (a) UK investment overseas and (b) foreign direct investment in the UK has been in each year since 2006; what proportion of total investment in the UK was represented by foreign direct investment in each year; and what the total level of investment in the UK was in each such year. (321121)

The tables attached provide the figures for financial flows and the international investment position of the UK from 2006 to 2008. In accordance with the definitions of balance of payments statistics, investment data are presented in terms of economic transactions between UK residents and the rest of the world. Total investment in the UK is calculated by aggregating the rest of the world’s direct, portfolio and other investment in the UK. The figure reported for total investment therefore excludes any domestic investment in the UK. The figures are published in the financial account and the international investment position of the UK’s Balance of Payments Statistical Bulletin. Provisional figures for 2009 will be published on Tuesday, 30 March 2010.

Table 1: Investment flows, in £ million unless otherwise stated1,2,3

2006

2007

2008

UK investment overseas

571859

995677

-614196

Foreign direct investment in the UK

84889

98150

49767

Proportion of total Investment in the UK represented by foreign direct investment (percentage)

13.91

9.55

-8.31

Total investment in the UK

610084

1027353

-599014

Table 2: International investment position at end of year, in £ million unless otherwise stated4

2006

2007

2008

UK investment overseas (assets)

5212273

6384633

6967542

Foreign direct investment in the UK (liabilities)

578289

630164

672289

Proportion of total Investment in the UK represented by foreign direct investment (percentage)

10.39

9.45

9.57

Total investment in the UK (liabilities)

5564833

6667153

7026728

1 A negative figure implies disinvestment.

2 The figures are consistent with the Financial Account, Table J of the UK’s Balance of Payments Statistical Bulletin Q3 2009.

'3 The annual figures for the investment flows are compiled by summing the flows of the four quarters.

4 The figures are consistent with the international investment position, Table K of the UK’s Balance of Payments Statistical Bulletin Q3 2009.