Spanish investment in the United Kingdom continues to consolidate itself as a fundamental pillar of economic relations between both countries, demonstrating notable resilience and attractiveness despite the challenges of the global environment. This is reflected in the sixth edition of the «Barometer on Climate and Prospects for Spanish Investment in the United Kingdom», presented this Tuesday at the Spanish Embassy in London by the Spanish Chamber of Commerce in the United Kingdom. This report, which has become an essential document since its creation in 2019, combines key data on Spanish investment in British territory with the perceptions of more than 100 active companies in this market.
According to the latest official data available, the United Kingdom represented in 2022 the 14.5% of the stock of foreign direct investment (FDI) from Spain, accumulating 79,486 million euros, which makes it the second destination for Spanish investment, only behind the United States, with 14.9%. Since records began in 1993, the United Kingdom has received more than 169,000 million euros in Spanish direct investment, consolidating itself as the main historical destination for these investments. Furthermore, the flow of Spanish investment experienced a significant rebound in the first half of 2024, multiplying by 12 compared to the same period in 2023, after the drop recorded the previous year. The sectors that have benefited most from this trend have been the telecommunications, the real estate market and air transport.
The impact of Spanish investment on the British labor market is also notable. In 2022, these investments generated and maintained close to 133,000 jobsof which 75,910 were direct, representing the 0.4% of the total of jobs in the UK. These figures reflect an improvement compared to 2021, when 121,000 jobs were associated with Spanish investment, underscoring the crucial role of Spanish companies in the British economy.
The Barometer presentation event brought together prominent figures from the public and private spheres of both countries, including the ambassador of Spain, José Pascual Marco; the president of the House, Eduardo Barrachina; and the Secretary of State for Commerce, Amparo López Senovilla. Representatives from leading companies such as Abanca, BBVA, Cellnex, Ferrovial, Iberdrola and Banco Santander, among others, also participated. During the event, three round tables were held where key topics were addressed such as british regulationthe challenges and opportunities for Spanish companies and the perspectives of the public sector.
Eduardo Barrachina He highlighted that “the celebration of the Barometer in London is the only annual bilateral economic event between Spain and the United Kingdom, where governments and companies exchange points of view on the state of Spanish investments on the other side of the Channel.” Likewise, he assured that “despite the constant political and economic changes, I continue to trust that there are opportunities for us and our members that will allow us to maintain our good performance in the coming years” and was optimistic when assuring that “our relationship with the United Kingdom has a long history.”
During his speech, Barrachina raised with the British government some concerns of Spanish companies, such as the need to bring the United Kingdom closer to the European Unionthe need for clarity in the deadlines for railway investments and the confirmation of infrastructure projects, and urged greater agility in the procedures to attract qualified talent. In the field of financial services, Spanish companies requested a review of the financial architecture to make it more effective, simpler and less bureaucratic.
The report reflects that, despite political and economic uncertainties, Spanish companies maintain a positive perception of the business climate in the United Kingdom. Three out of four rate it as at least “acceptable”, highlighting the facilities for digitalization and the commitment to sustainability as key aspects. However, the quality of life in the United Kingdom it has been noted as the more negative aspect in 2024, while inflation remains the main challenge for companies, affecting almost half of those surveyed, while staff shortages are also relevant, going from 26% in 2023 to 36% in 2024.
Looking to 2025, expectations are optimistic. More than half of the companies plan to increase their turnover, expand their investments and hire more staff in the British market. Priority areas include improving the productivitythe digitizationhe marketing and hiring talent. London and its metropolitan area will continue to be the main destination for these initiatives. In this context, it is not surprising that 93% of Spanish companies consider the United Kingdom as a strategic market for their businesses.
The Barometer also highlights that companies trust in which the government led by Prime Minister Keir Starmer will inaugurate a new stage of dialogue with the European Unionfacilitating the movement of goods, services and capital, and reducing non-tariff barriers. The event culminated with the interventions of the Secretaries of State for Commerce of the United Kingdom and Spain, Douglas Alexander and Amparo López Senovillarespectively, reaffirming the importance of this strategic relationship and the commitment of both countries to its long-term strengthening.
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