Export resurgence a standout success, says economist
In recent years it has also been encouraging that a steady pattern of restructuring of the foreign multinational presence in Ireland towards higher-value sectors such as financial services, pharmaceuticals and biopharmaceuticals has been taking place, he says.
That continued into 2007 and augurs well, he said.
While Ireland has continued to face up to the challenges of growing competition, one key factor has gone virtually unnoticed — renewed vigour in Irish exports.
He said: “The continued success of the IDA over the last two to three years is consistent with the resurgence in exports witnessed in 2007, which was the unheralded economic success story of 2007”, he said.
Last year’s increase in net exports from the business sector returned to levels last seen at the height of the ICT boom, he said.
That was due to the rapid rise in services exports, on the back of investment by firms such as Merrill Lynch and Daiwa Securities.
“Looking to 2008, the IDA’s optimism is well placed. The size of the global foreign direct investment cake is likely to continue to grow next year, and Ireland is well placed to get a sizeable share”, he said.
Troubles in the credit markets are not dampening corporate plans for new foreign direct investments, according to the AT Kearney Foreign Direct Investment Confidence Index, the first detailed survey of top executives conducted since the subprime crisis erupted this summer.
In that context, Barry O’Leary, the new boss of IDA Ireland, said yesterday the ability of Ireland to win foreign investment was verified recently in a leading survey.
Computer company IBM, which advises companies on investment overseas as a separate corporate activity, showed that last year Ireland was third after Singapore and the Czech Republic in terms of jobs created by foreign direct investment.
IBM’s figures are based on the number of foreign jobs created per 100,000 in habitants.
