HC Deb 18 December 1996 vol 287 cc700-1W
Mr. Milburn

To ask the President of the Board of Trade for each year since 1979, what was the value of(a) inward investment, (b) outward investment, (c) acquisitions in the United Kingdom by overseas companies, (d) acquisitions overseas by United Kingdom companies and (e) the proportion of inward investment that is accounted for by acquisitions in the United Kingdom by overseas companies. [7829]

Mr. Greg Knight

[holding answer 6 December 1996]: The table shows the flows of direct investment in each year. Their volatility reflects the economic cycle and the peaks and troughs of acquisitions. They are, therefore, not a good indicator of the general trend of direct foreign investment.

Since 1979, the total stock of inward investment into the UK has more than tripled, and the UK continues to be the number one location for Japanese, US and Korean investment in the EU.

(a) Inward investment £ million (b) Outward investment £ million (c) Acquisitions in the UK £ million (d) Acquisitions overseas £ million (e) Percentage acquisitions in inward investment
1984 -181 6,042 659 2,685 n/a
1985 4,504 8,430 677 3,094 15.0
1986 5,837 11,649 1,355 6,521 23.2
1987 9,449 19,147 2,999 6,985 31.7
1988 12,006 20,863 3,147 7,665 26.2
1989 18,567 21,503 5,889 9,513 31.7
1990 18,514 10,490 9,952 7,198 53.8
1991 9,058 9,056 4,781 4,754 52.8
1992 9,184 10,850 6,272 5,037 68.3
1993 10,298 17,026 5,309 3,681 51.6
1994 6,823 18,363 2,960 6,667 43.4
1995 20,480 25,546 12,304 6,213 60.1

Note:

Figures represent the flows of direct net investment. Investment includes investors' shares of the unremitted profits, their net acquisition of share and loan capital, changes in inter-company accounts and changes in branch/head office indebtedness. Inward investment includes property investments by overseas companies and investments made by individuals. Outward investment includes real estate transactions by non-bank financial institutions and persons. It also includes non-bank financial institutions' loans and mortgages to overseas residents.

Source:

"United Kingdom Balance of Payments, The Pink Book" 1990, 1994, 1996.

Office for National Statistics.