The United Kingdom has emerged as the second most attractive country for investment, according to an annual survey by PwC, marking a significant rise in its global standing.
The survey, which includes responses from nearly 5,000 CEOs across 109 countries, places the UK just behind the United States and ahead of major global economies such as China, Germany, and India.
This is the highest ranking for the UK in the 28-year history of the PwC survey, up from fourth place in 2024, signaling a positive shift in global business leaders’ perceptions despite ongoing economic uncertainties.
The findings offer a surprising contrast to the pessimism that has often surrounded the UK economy in recent months.
Chancellor Rachel Reeves, who is set to attend the World Economic Forum (WEF) in Davos, Switzerland, this week, welcomed the results, calling them a “vote of confidence” in the UK.
“These latest results show global CEOs are backing Britain, and the UK is one of the most attractive destinations for international investment. It’s this investment that will help drive economic growth and improve living standards across the UK,” she said.
Reeves, alongside Business Secretary Jonathan Reynolds, will meet with key business leaders at the summit, including JPMorgan Chase CEO Jamie Dimon and Jo Taylor, president of the Ontario Teachers’ Pension Plan.
Their goal is to emphasize the UK as a prime partner for investment, reinforcing the country’s position as a safe haven amid political and economic instability elsewhere.
The survey highlights that 14% of global CEOs view the UK as the destination for the most forthcoming capital investment, following the US, which is favored by 30% of those surveyed.
Germany, with 12%, and China, with 9%, rank next, though both countries face significant challenges.
Germany is contending with a recession and upcoming elections, while China’s economic future is uncertain, particularly amid potential new import taxes from the US.
Marco Amitrano, senior partner at PwC UK, acknowledged the UK’s resilience during turbulent times, noting that the nation’s relative stability, coupled with its strength in sectors like technology, should not be underestimated.
However, he also cautioned that there is no room for complacency. The positive survey results come at a time when the UK’s economic outlook is improving.
The International Monetary Fund recently upgraded its forecast for UK growth in 2025 to 1.6%, driven by increased investment, better household finances, and anticipated interest rate cuts by the Bank of England.
Despite these encouraging signs, the UK government faces ongoing criticism, particularly after Chancellor Reeves’ budget in October, which included a £25bn increase in national insurance contributions for employers.
Some business lobby groups have raised concerns about aspects of the government’s employment bill, aimed at enhancing workers’ rights.
Nevertheless, the government remains confident in its approach, stressing the importance of fiscal discipline and its secure majority in parliament, which ministers believe will bolster the UK’s attractiveness as a stable investment destination.
At the WEF, global business leaders will be discussing pressing issues, including economic growth, climate change, and social inequality.
Environmental groups, including Greenpeace, have also voiced their opposition to the summit, criticizing the concentration of wealth and power among the elite, calling for higher taxes on the super-rich to address global crises.
Despite these protests, the UK’s investment appeal remains strong, underscoring the nation’s continuing prominence on the global business stage.