|Foreign-owned Firms Punch above Weight|
Foreign-owned companies account for more than a quarter of Britain's business economy, despite making up just 1pc of total businesses in the UK.
Businesses with overseas owners contributed 28pc of the gross value added (GVA) by companies - a measure of economic activity related to production and income - in 2011. Total GVA in 2011 was about £1.39 trillion, of which business generated roughly £980bn in total and foreign-owned companies created about £270bn.
Foreign-owned businesses were likely to be bigger in terms of employment and, therefore, were more likely to add more value to the UK business economy. Manufacturing, farming and industry saw the largest contribution from foreign-owned businesses, contributing 46pc, while the construction sector, which has the smallest proportion of foreign-owned businesses, at 0.3pc, contributed 7pc of value added. America was the country with the largest presence in the UK. The rest of the top 10 foreign countries contributing to "value-added" in the UK business economy were France, Germany, Netherlands, Switzerland, Spain, Japan, Canada, Jersey and Luxembourg.
The opinions expressed do not constitute investment advice and specialist advice should be sought about your specific circumstances.
Published on our website on October 31, 2013