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London remains leading city for foreign direct investment

by LLB Reporter
1st Aug 18 2:50 pm

According to the latest Global Locations Trend report from IBM, London remains the number one destination city measured by the number of projects.

The annual report highlights the factors driving foreign direct investment and impacting enconomic growth around the world as well as countries and regions that are benefiting from foreign direct investment.

In a very close second place was Paris after showing considerable growth in 2017 and is fast encroaching on London’s previously dominant position.

Other key findings:

  • The United States reclaimed the #1 spot in foreign investment attraction
  • Global job creation through foreign investment decreased 5% with inward investment to the United States and Canada recorded growth of 5% and 25% respectively.
  • China, India, Mexico and multiple other emerging markets experienced declines
  • Overall technology related jobs continued to increase

Two powerful forces are shaping the new era of Globalization 4.0 and disrupting the global economy in the process. First, digital technologies are transforming industries and global value chains at an unprecedented rate. Often referred to as the Fourth Industrial Revolution, the emergence of new digital technologies is not only changing the internal operations of companies, but giving rise to a new data-driven global economy.

The report shows greater volatility in foreign direct investment. This volatility is evident both overall and for individual countries as companies and countries adapt to Globalization 4.0. Navigating this new era for economic development and job creation will likely put increased pressure on policy makers to shape business environments that are responsive to rapidly – and continually – changing industry requirements.

Specifically, London was recognized in the report for leading all major cities in foreign direct investment. But, it’s important to note that while London attracted more local sales and services operations, the number of headquartered projects declined this year by almost 40 percent. After London, the top five cities were Paris, Singapore, Amsterdam and Chicago.

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