Investment by foreign firms plummets 60%
State agency Forfás, which advises the Government on industrial development, last night warned the worrying trend is continuing into 2002.
A report published by the United Nations Conference on Trade and Development (UNCTAD) confirmed a 60% drop in foreign companies' investment here.
The 2001 figures show a fall from $24 billion to $10 billion.
In contrast to the drop in the inward flow of investment, outward Foreign Direct Investment (FDI) flows from Ireland increased significantly in 2001. The outward flow is believed to reflect the emergence of a growing cohort of Irish-based multinational companies.
Meanwhile, President of the Irish Exporters' Association Brian Ranalow warned that Irish exporters are under heavy competitive pressures due to the uncertainty in international trade.
The role of UNCTAD is to focus on the links between trade, investment and development. Its World Investment Report 2002 found that FDI flows declined worldwide for the first time in ten years.
The drop is blamed on a global slowdown in economic growth.
Although the fall was concentrated in developed countries, developing countries also saw their FDI flows reduced.
Meanwhile internet security company, Symantec Corporation, Blanchardstown, Dublin, is to establish the company's only R&D facility in Europe as well as expanding its existing production facility. The investment will add around 250 high quality jobs to the facility.
In Co Louth, Quantum Corporation, a data protection and network storage systems firm, has concluded its negotiations with IDA Ireland for an expansion of its Irish operation, Quantum Peripheral Products. The expansion will create an estimated 120 jobs.
A further 100 jobs will be created at Servier (Ireland) Industries Limited, Arklow, Co. Wicklow, which is to expand its pharmaceuticals operation in a 52 million investment.
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