In 2011, emerging economies contributed around 10% of total global outward investment flows, up from less than 1% in 2000.
While the BRICs still only make up 3.3% of the total UK inward FDI stock, this share has tripled since 2001. India and China have been the main contributors.
The UK’s key strengths in attracting inward investment include access to a flexible labour force, world class technology and well developed financial markets. But the UK also has some weaknesses, including a relatively high cost of living and poor infrastructure relative to other Western European economies.
A major opportunity for the UK lies in attracting further investments from fast growing economies like Russia, Mexico, South Africa and the Middle East, as well as China and India. The UK could also exploit the potential of its world class universities in attracting more R&D.