Britain Trails G7 Peers in Investment Inflows Despite Economic Growth Push
Britain recorded the weakest investment inflows among G7 nations in 2025, with capital inflows settling at just 18.6% of GDP in Q3—lagging even behind Germany's stagnant economy. The figures undermine Prime Minister Starmer and Chancellor Reeves' efforts to attract capital through deregulation and regulatory reforms.
Analysts suggest structural barriers in Britain's investment climate may be driving capital to more proactive European markets. Italy, notably, emerged as the G7's top performer this year despite its historical economic fragility.