- UK shares second place with Germany and India as an investment destination.
- Only 30 per cent of global chief executives expect revenue growth this year.
- Technology and AI spending is rising, but returns remain modest.
The UK has managed to hold its ground as one of the world’s most attractive destinations for global investment over the past year, even as competition from other economies intensifies and confidence among business leaders weakens.
According to the latest chief executive survey by PwC, Britain remained the second most attractive country for international investment in 2025. This time, however, it shares that position with Germany and India, highlighting how the global race for capital is tightening.
All three countries were named by 13 per cent of surveyed chief executives as the locations most likely to receive the greatest share of investment in 2026. That marked a one per cent fall for the UK, a one per cent rise for Germany and a sharp jump for India, which climbed from seven per cent last year.
Standing firm in a crowded field
The United States continued to dominate the rankings, with 35 per cent of chief executives citing it as the most attractive investment destination. Beyond the top spot, the survey points to a more cautious mood globally.
Only 30 per cent of chief executives said they were confident about revenue growth over the next 12 months, down from 38 per cent in 2025 and 56 per cent in 2022. In the UK, economic anxiety has grown faster than elsewhere. Around a quarter of UK bosses now expect the domestic economy to weaken over the next year, compared with 13 per cent a year earlier.
Despite this, Britain’s ability to retain its ranking appears to be linked to efforts to strengthen trade ties. The UK-India free trade agreement, signed in July, is aimed at boosting bilateral trade by cutting tariffs on goods such as whisky and cars. The UK also reached an economic partnership with the US that offered tariff relief on UK steel, although that arrangement is now uncertain following fresh tariff threats from Washington.Big bets on tech, slower payback
UK companies are increasingly turning to technology to stay competitive. More than 80 per cent of UK chief executives said investment in technology, artificial intelligence and data is a top priority, up from 60 per cent last year. Even so, the returns have been limited so far.
Only 21 per cent of UK businesses reported revenue growth from AI in the past 12 months. That compares with 29 per cent in other countries, although those firms also said they faced higher costs from their AI investments. Globally, 40 per cent of chief executives said AI spending is essential to meeting their business goals.
Confidence in short term growth remains weak. Just 38 per cent of bosses said they feel highly confident about revenue growth, a five year low. Longer term expectations are more positive, with 51 per cent predicting revenue growth over the next three years. Still, only two fifths expect merger and acquisition activity in the coming year.
Marco Amitrano, senior partner at PwC UK, reportedly said being the world’s second most important investment destination for a second year “should not be underestimated”, as quoted in a news report. He added that sharing the position is also “a wake up call” as other countries gain ground.
Amitrano also reportedly pointed to “bureaucracy and cumbersome structures” as key reasons UK businesses struggle to see faster returns from AI investment, saying such friction slows innovation and business performance.
