US investment in Ireland grows by 9%

US investment into Ireland amounted to $30.5 billion (€23.6bn) last year, marking a 9% increase on 2010 and the second highest annual level on record.

The figure is one of the headline findings from a new report commissioned by the American Chamber of Commerce Ireland into the economic relationship between the two countries, due to be launched this morning by Jobs, Enterprise and Innovation Minister, Richard Bruton.

Written by Wall Street economist and strategist, Joseph P Quinlan The Irish-US Economic Relationship, 2012 study estimates the economic output of US multinationals in Ireland to be $57.5bn, representing 26.5% of Ireland’s GDP.

“Despite the stiff headwinds, the ties that bind Ireland and the US together have generally become stronger, not weaker over the past year. Ireland has done an admirable job of differentiating itself from other financially impaired countries within Europe and this hasn’t gone unnoticed by the US investment community,” Mr Quinlan said yesterday.

He added that maintaining its links with corporate America — combined with planned budgetary adjustments — should see Ireland emerging from the economic crisis “stronger and more competitive”.

The report suggested that Ireland needs to improve its trading ties with developing nations — particularly peripheral European nations like Russia and Turkey.

“This is a massive opportunity for Ireland to capitalise upon,” it said.

Referring to Ireland’s economic relationship with the US as a two-way street, the report noted that while Ireland’s foreign direct investment stock in the US dropped by around 4%, during 2011, to $25bn, Irish affiliates — meaning the US-based operations of Irish companies — remain the country’s tenth largest overseas employer of American workers, employing around 120,000 people.

Combined US inflows of $58.5bn into Ireland during 2010 and 2011 represent the strongest two-year period of inflows on record, representing what Mr Quinlan calls a surge in capital and confidence from the US.

American companies added around 12,000 jobs to the Irish workforce between 2000 and 2009; currently employing nearly 110,000 people here.