According to the analysis of the London-based think tank Institute for Public Policy Research (IPPR), based on data from the Organization for Economic Co-operation and Development (OECD), the UK has ranked lower among G7 countries in terms of investments in 24 of the last 30 years.
The latest comparable data for 2022 showed that investment by the private sector in the UK was lower than in all other G7 countries for the third year in a row.
Additionally, the UK ranked 28th in private sector investment among 31 OECD countries.
Slovenia, Latvia and Hungary have attracted more private sector investment than the UK in terms of Gross Domestic Product.
Only in Greece, Luxembourg and Poland did private sector investments remain lower than in the UK. The last period in which the UK attracted average investment among G7 countries was 1990.
According to the analysis, if the UK could maintain its investment level during this period, an additional investment of $1.9 trillion would have been made in the country.
IPPR called on the new government to be established after the elections on July 4th for new investments that will provide growth in important areas such as electric vehicles, renewable energy, infrastructure, education and health.
IPPR Deputy Director of Economic Policies George Dibb, one of the authors of the report, stated that investments are the fuel of economies and said, “Britain’s low productivity performance is the biggest reason for our poor living standards. It is difficult to see the improvement of the UK’s economic performance when resources are not flowing into new investments. We know that public investments are private investments.” “In this regard, the government needs to lead by developing a green industrial strategy and show businesses that the UK is a safe, sensible and stable place to invest.” made his assessment.
