Investors pull back from UK as economic gloom deepens

Investors pull back from UK as economic gloom deepens

Britain has emerged as the most popular markets around the world among the leading fund managers, as growth kiosks are eager and enlarged after the budget of Chancellor Rachel Reeves.

A monthly survey conducted by Bank of America reveals that the United Kingdom is the least attractive countries for investors, which occupy bonds, cash, energy and facilities in terms of appeal.

The results come amid signs of a fragile local economy. Modern data showed that gross domestic product is only 0.1 % in the last quarter of 2024, mostly driven by high government spending. In contrast, the private sector contracted during the same period, and business investment has decreased since the budget raid of 25 billion pounds on national insurance contributions to employers.

Elyas Galou of Bank of America says the data explains the status of a textbook from the “recession” in the United Kingdom: the growth subject to the sperm inflation. “When I talk to investors, I often ask when they heard positive news about the United Kingdom. They are usually struggling to answer. It is a problem mainly.

Global investors are increasingly attracted to the United States and the eurozone, where the UK has witnessed outfits of $ 129 billion since Britain's exit from the European Union in 2016, approximately half of the total assets run by the UK stock funds. During the same period, American stock funds attracted $ 1.1 trillion of new money, confirming a huge axis away from Europe – especially Britain.

While the government aims to cancel foreign investment to stir economic expansion in the long run, the feelings are still firmly negative. The recent visit of the Chancellor to China and the reshaping of commercial talks with India prompts White -head to extract international capital, yet renewed faith in the story of Britain's growing growth remains.


Jimmy Young

Jimmy is a major business correspondent, as he brings more than a decade of experience in the commercial reports of small and medium -sized companies in the United Kingdom. Jimmy holds a certificate in business administration and regularly participates in industrial conferences and workshops. When not reporting the latest business developments, Jimmy is excited to guide journalists and new businessmen to inspire the next generation of business leaders.

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