The East Midlands has experienced a downturn in Foreign Direct Investment (FDI), according to the latest EY UK Attractiveness Survey.
The region recorded 31 projects in 2023, a 35% decrease on the previous year. This decline marks the second-lowest total of FDI projects for the East Midlands in a decade, causing its share to drop to 3.1% of all UK projects. The East Midlands ranked as the UK’s tenth best performing region in attracting investment.
The East Midlands recorded almost the same number of jobs associated with FDI projects in 2022 as in 2023. The total in 2023 was 2,848, ranking the East Midlands eighth out of twelve UK regions for FDI-associated employment.
The East Midlands’ FDI performance was led by Transportation Manufacturers and Suppliers with seven projects, followed by Agri-food with five, and Machinery and Equipment and Software and IT services, each with four projects.
The East Midlands’ performance contrasts that of the West Midlands, which attracted 127 FDI projects in 2023, its highest total of the last decade.
Simon O’Neill, Office Managing Partner for EY in the Midlands, said: “The West Midlands recorded a meteoric rise in inward investment last year, a clear indicator of the region’s strong economic potential and its growing appeal to international capital.
“While we celebrate these successes, we remain committed to understanding the challenges faced by the East Midlands and to supporting its efforts to regain momentum in attracting global investment. The West Midlands’ success story is not only a win for the region but also a significant contribution to the UK’s position as a prime destination for foreign investment.”
