IDA Ireland has reported record Foreign Direct Investment (FDI) half-year results, with overall investments 10 per cent above pre-pandemic 2019 levels.
The inward investment agency of the Irish Government reported significant investment growth in the first half of 2022 despite a “challenging” global environment, with the strongest-ever investment approvals in the period.
155 investments were won, with an associated employment potential of more than 18,000 jobs. 73 were new name investments, while close to half of the investments went to regional locations outside Dublin.
Key investments include Intel’s announcement of a €12 billion investment in Ireland as part of its European development plans, Apple’s announcement that it will further expand its operations in Cork with the addition of a new campus building and TikTok’s move to hire an additional 1,000 workers in Ireland.
Speaking today at the launch of IDA Ireland’s 2021 Annual Report, Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar described the results as “incredible”.
“We had a record year last year for foreign direct investment and now, today, we see that we’ve exceeded that again in the first six months of the year with investment up nine per cent on last year," he said.
“Given everything that’s happened over the last few years, that really is remarkable. It’s showing no sign of slowing down.
“We should never forget that the jobs and revenue created by multinationals helped to keep us out of recession when the pandemic hit and are now giving us the financial firepower to ease the cost of living crisis and avoid recession once again.”
'Word of caution'
The Tánaiste however added a “word of caution,” noting the pressures of inflation, the war in Ukraine, increased international competition for FDI and climate change.
Chief executive of IDA Ireland, Martin Shanahan, said “these are very strong half year results achieved against a backdrop of a global pandemic, Brexit, considerable geo-political uncertainty globally, inflationary pressures, supply chain challenges, climate change and energy issues and, since the start of the year, Russia’s invasion of Ukraine.”
“Ireland’s existing base of foreign direct investment is a core national asset that we cannot take for granted,” he added.
“The benefit of FDI, as outlined in the IDA’s annual report 2021 launched today, shows the many contributions that FDI makes to the economy, including direct and indirect employment, 72 per cent of export sales, 70 per cent of corporation tax, and direct expenditure on pay, materials and services totalling €27.9 billion.”
Mr Shanahan said that while threats remain from a resurgence of Covid-19 and the high level of risk and uncertainty in global markets, “investors’ commitment to Ireland remains strong.”