IDA Ireland, the inward investment agency of the Irish Government, today reported steady investment growth in the first half of 2023. Investments won over the first half of 2023 are tracking in line with our expectations of a positive pipeline. The outlook for investments over the second half of the year remains strong. IDA Ireland continues to engage with clients across all sectors, who collectively play a crucial role in supporting Irish economic growth.
In the first half of 2023, 139 investments were won, with the potential of 12,072 jobs. 52 were new name or first time investments, while 67 (48%) of the 139 investments went to regional locations.
Several strategic investments approved and announced in the first half of the year involve large job numbers and significant capital investments.
Speaking today at the launch of IDA Ireland’s 2022 Annual Report, Minister for Enterprise, Trade and Employment, Simon Coveney said: “We saw a record year last year for foreign direct investment and today, despite significant challenges in the global economy, we see this level of performance largely maintained in the first six months of this year.”
“These results are also commendable given ongoing international turmoil caused by Russia’s illegal invasion of Ukraine. While there are some other economic headwinds ahead, including persistently high inflation, Ireland continues to win international investment due to our highly educated and talented workforce and because of our stable pro-business environment.”
“We’ve worked hard to create a welcoming environment for FDI in all parts of the country and the strong spread of jobs and investment in today’s results is in keeping with government policy, with 67 (48%) of the 139 investments outside of Dublin. While Dublin continues to be the engine of our economic growth, our aim is for well paid, long-term sustainable jobs, to be available in every region in Ireland. That is our objective and I’m glad to see that largely reflected in today’s results.”
Michael Lohan, CEO IDA Ireland said: “These are strong half year results achieved against a backdrop of considerable global geo-political uncertainty, ongoing inflationary pressures, supply chain challenges, climate change and energy issues, as well as the ongoing Russia Ukraine conflict. The results show the endurance and strength of the FDI sector with 139 investments approved so far this year with associated employment figures remaining strong, at over 12,000 jobs approved.”
“Ireland is an established top tier investment location for multinationals who choose us because of our consistent, stable, pro-business landscape, our high level of education, our ability to attract and retain talent, and the flexibility and agility of our skilled workforce. Central to Ireland’s continued success will be embracing transformation to enable our economy, our enterprise base, and our people to thrive in a world where companies who do not progress on the paths of digitalisation and decarbonisation will be left behind. In this context, the ambition of the Government’s White Paper on Enterprise in setting a vision for enterprise policy to 2030 is welcome. IDA Ireland is actively engaged with the Department of Enterprise, Trade and Employment (DETE) on the White Paper, the full implementation of which will enhance Ireland’s competitiveness in a decarbonised and digitalised global economy.”
“Ireland’s existing base of foreign direct investment is a core national asset that we must continue to nurture and develop. Exports by multinational companies (MNC’s), a key factor to Ireland’s economic 2022 recovery, grew to €315.5bn, approximately 70% of total national exports in 2021. Beyond expenditure in the Irish economy, IDA Ireland clients make a considerable contribution to the public finances. Sectors dominated by IDA Ireland client companies account for an estimated 70% of corporation tax receipts and also make a significant contribution to income tax receipts.
“Progressing with plans to improve the carrying capacity of the economy will be vitally important to enable Ireland to maintain existing levels of investment and to fully realise opportunities in the years ahead. IDA Ireland has frequently highlighted the need to efficiently deliver on key objectives including increasing the supply of new housing, making the planning system clearer and more consistent, and progressing key infrastructure projects under the National Development Plan. The transformative nature of policy, geopolitical and technological developments over the past 12 months also place an added emphasis on the need to fast-track the roll-out of renewable energy, invest in the digital skills of our people, promote RD&I, and ensure we have a competitive green and digital incentive offering.”
Concluding Michael Lohan said, “Investors commitment to Ireland remains strong. The country’s value proposition as a place in which to do business remains, as evidenced by these results, a compelling one. As we seek to lay the foundations for continued growth and transformation in the FDI base in the years ahead, our success will depend on progress towards enhancing the carrying capacity of the economy in the immediate and medium-term. The key areas requiring attention remain planning, housing, energy, water and wider infrastructure. Policies that support the continued availability of talent are also critical. Managing costs in the current inflationary environment and executing on planned capital projects will be challenging, but important for Ireland’s continued competitiveness.”