In recent decades the UK has invested a smaller share of GDP than other industrialised countries – around 18% of GDP, compared with the OECD average of almost 21%. This has left a legacy of low capital stock per worker. Following growth of around 4% a year in the 1980s, investment in the UK declined during the recession of the early 1990s. However, in 1997 investment (gross fixed capital formation) at constant 1995 prices increased by 6.1%, the fastest rate of growth since 1988. Business investment rose by 8.8%, with private sector investment in dwellings up by 7%, although investment by general government fell by 9.1%. During the second quarter of 1998 overall investment at 1995 prices was 5.7% higher than a year earlier, with a stronger rise in business investment (7.1%) and a sharp rise in investment by general government (of 26.1%).
Business investment has been helped by the high level of inward investment. In recent years, the UK has received the greatest share of inward investment into the European Union, including over 40% of Japanese investment and about 40% of US investment.
Words you may need:
gatewayn ворота
mergern слияние
acquisitionn приобретение
legacyn наследство, наследие
gross fixed capital formationваловые вложения в основной капитал
dwellingsn жилье