What is interesting about the ranking of western European financial centres is not necessarily London’s imposing presence when it comes to foreign direct investment (FDI) – though the City of London does continue to tower over any other hub in the region – but the opposing trends visible in inflows and outflows of financial services FDI.
While investment attracted by western Europe’s top 10 hubs diminished in the 12 months to the end of March 2016 – $2.12bn against $3.14bn a year earlier – outward expenditure has risen to $7.99bn from $6.57bn, according to estimates by greenfield investment monitor fDi Intelligence. This is mirrored in London’s own performance. The UK capital’s inflows were about 15% lower than in the previous period, while outflows grew by the same percentage.
In the inward FDI table, Barcelona has reached second place, albeit a long way behind London. It has displaced previous runner-up Madrid, which is now in eighth position. Most of the table is occupied by traditional financial centres with the exception of Glasgow, in ninth place. The Scottish hub has attracted a total estimated $81.7bn thanks to investments by BNP Paribas, US insurer Arthur J Gallagher and a wealth platform belonging to Bermuda-based Genpact.
In the outward ranking, London is followed closely by Zurich and Paris. High-profile western European capitals dominate the table, with the exception of Trieste, in fifth place. The north-east Italian hub has generated a total of $414.3m, not far behind fourth placed Frankfurt’s $460.8m. All 11 projects came from insurer Assicurazioni Generali, which has invested heavily in Vietnam and Panama City, as well as western Europe.