Au revoir, London. Paris is now the most appealing destination for foreign investors.
Paris is more attractive to foreign investors than London according to a new report, which highlights Brexit as one of the main causes for the shift.
A new study by accounting firm Ernst and Young (EY) shows that the number of foreign investment projects in France has soared, with Paris beating London of its top spot in terms of attractiveness to investors for the first time since the report began in 2003.
From its 54% peak in 2014, London’s attractiveness has declined to 34% in 2018.
This was the first time Paris has outdone the British capital since the annual survey started in 2003. Berlin came third and Frankfurt fourth.
The French capital was ranked No. 1 for foreign direct investment by 37% of businesses, based on a survey of 502 companies and data from EY and IBM covering last year.
France enjoyed surging project numbers, an increase of 31%, and has now become a direct competitor to Germany and the UK.
“Investment slowed after the 2008 financial crisis, but France is now in catch-up mode, and a beneficiary of Brexit,” the report said, citing President Emmanuel Macron’s reforms to make the labour market more flexible.