Lord Green said:

"This report reinforces the UK's position as one of the most attractive places to do business in the world. The Coalition Government has put attracting and retaining investment at the heart of its plans for sustainable economic growth and today's figures show that we are on the right path."

Susan Haird, acting Chief Executive Officer of UK Trade & Investment said:

"The report reinforces the UK's attractiveness to Foreign Direct Investment. UK Trade & Investment has played an important role in encouraging overseas investors to come to the UK."

The World Investment Report shows that, the UK has outperformed a declining European market, the UK's share of FDI stock increased while the overall stock of FDI in Europe declined to $7,614 billion (from $7,951 billion in 2009) and that in the EU fell to $6,890 (from $7,296 in 2009).

The UK has benefited from increased levels of investment in manufacturing, electronics and IT. These investments are increasing being made from cash reserves rather than by borrowing. As such they are more sustainable and less reliant on the world's global stock markets.