Foreign investment into London has soared to a record high despite the credit crunch, the capital’s inward investment agency will reveal today.

An unprecedented 178 international companies set up or expanded business in the capital in the year to March, contributing £710m to the capital’s economy. They hired 6,152 people, twothirds more than in 2006-07.

Michael Charlton, chief executive of Think London, told the Financial Times that 2008-09 would be 'challenging', but insisted London was well placed to continue attracting new investment in the next couple of years.

The US remained the largest investor, creating 2,739 new jobs, 44% of the total. India held on to second place with 825 jobs.

The world’s largest economy also contributed 30 per cent of the 178 new projects, up from 134 last year. India and China accounted for 9%, with Australia at 8%, France 7% and Japan 6%.

Financial Times