Britain to attract USD1T in investment to stimulate economic growth
(MENAFN) A recent report led by Sir Nigel Wilson, a prominent figure in London's business community, reveals that Britain requires approximately USD1 trillion in new investment over the next decade to revitalize its economic growth. The report, titled “The Future of Capital Markets,” was released on Friday by the Capital Markets Industry Task Force, which Wilson, the former chief executive of Legal & General Group and current chairman of Canary Wharf Group, chairs. The report's launch will take place at a notable event at the London Stock Exchange, bringing together key stakeholders, including CEOs, investors, and UK government ministers. This report arrives at a critical time when London’s status as a leading financial hub is being hotly debated, especially after the decision of British chipmaker Arm Holdings to list its shares in New York rather than in London last year, a move that underscored concerns about the city's financial competitiveness.
The report emphasizes that the UK must undertake significant reforms to attract around £100 billion in new investment each year, amounting to USD1 trillion over ten years, to achieve a targeted 3 percent annual growth in real wages and real GDP per capita. It notes that since the global financial crisis, the UK’s economy and capital markets have fallen behind those of the United States. At the report's launch event, leaders in the financial industry are expected to advocate for ongoing efforts to reform and enhance the UK's capital markets to compete more effectively with other global financial centers. The urgency for reform is heightened by Britain’s current economic challenges, including sluggish growth, political instability, and a trend of capital outflows from its listed companies.
Despite the current economic difficulties, Wilson's report takes an optimistic stance about the UK's future. While rejecting the notion that the country is caught in a "death loop," Wilson calls for substantial reforms in critical areas such as taxation and regulation. He emphasizes that for the UK to maintain its economic vitality, the government must encourage domestic investors and pension funds to channel more of their resources into UK-based assets. The report highlights the importance of proactive government policies to stimulate investment, arguing that with decisive action, Britain can reverse its economic fortunes and regain its competitive edge on the global stage.
MENAFN08092024000045015682ID1108648748
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.