Irish investment in US hits record high

LINKS between Ireland and the US have become stronger since the financial crisis erupted according to a new report.

Foreign direct investment from Irish companies in the US hit a record $8 billion (€5.9bn) last year, bringing the total Irish investment in the US to more than $30bn for the first time.

It is also estimated that Irish companies employ 120,000 workers in the US — another record high.

Gerard P Kilcommins, president of the American of Commerce Ireland, said Ireland’s 12.5% rate of corporation tax, highly skilled, qualified and flexible workforce and ability to compete internationally on costs and productivity, will be the foundation stones of our success going forward.

US firms have invested €139bn in Ireland since 1990, more than the four BRIC nations (Brazil, Russia, India and China) combined at €117bn.

In addition, US Foreign Direct Investment (FDI) to Ireland totalled $17.7bn in the first half of the year, a rise of 49% from the same period a year ago. Globally, only the Netherlands, Canada and Britain attracted as much US FDI as Ireland in the first half of this year.

A new report commissioned by the American Chamber of Commerce Ireland has revealed that US investment in Ireland is now worth $190bn and has grown fivefold over the past decade.

Ireland’s share of total US investment in Europe has risen from 5.2% to 8.7% over the same period and now accounts for one quarter of Irish GDP.

The figures are contained in a report from Wall Street economist Joseph P Quinlan called: Built To Last — The Irish US Economic Relationship.

Minister for Jobs, Enterprise and Innovation Richard Bruton said the relationship with the US is of vital importance to Ireland and the Government is determined to work hard to strengthen links to the benefit of both countries.

He said: “As the report concludes, this relationship, which was once based entirely around the great success story of US investment in Ireland, is now very much a two-way street.”

Exports — the bulk of which are from multinationals — continued to expand, underpinned by declining prices at home and by the exporting presence of top global companies like Boston Scientific, Pfizer and Google.

Ireland was one of the few nations in Europe which actually posted an increase in the number of FDI projects last year.

The number of projects in Ireland totalled 147, up 18% from the prior year.