IDA investment pipeline for 2024 'remains strong' despite challenges

Some 19,000 new jobs expected over the coming years

Michael Lohan, chief executive of IDA Ireland, said Ireland will continue focus on research as well as strengthening its global supply chain presence in order to ensure future growth. 

IDA Ireland’s pipeline for foreign direct investment (FDI) is in a “reasonably strong” position going into next year despite a slowdown in the economy and the first net loss of jobs in the sector since 2009.

According to the IDA’s annual results for 2023, for the year ending in October, the agency won a total of 248 new investments — an increase of 2.5% on 2022 — which it said will create an additional 19,000 jobs in the coming years.

Of the 248 investments secured during 2023, 156 were from North America and 68 were from Europe.

A third of these investments were from companies investing in Ireland for the first time and over half, 54%, were in areas outside of Dublin.

Despite numerous challenges during 2023, IDA said the FDI proposition "remains strong" against a challenging international environment and increased competition.

IDA chief executive Michael Lohan said the pipeline for investment for the first half of next year is “reasonably strong” but there are going to be external factors that all open economies have to deal with.

He said there has been a very turbulent 14 to 15 months, with tech companies seeking to cut jobs, but Ireland will continue to focus on areas such as research, strengthening the global supply chain presence here, as well as transportation which will “inevitably will lead to future growth”.

The results show that there are 300,583 people employed across the IDA’s 1,800 clients which is a decline of nearly 1,000 compared to the same period last year. 

This is the first time there has been a net loss of FDI jobs since 2009.

The total number of jobs located outside of Dublin supported through FDI stands at 163,471.

These numbers include the job cuts in the tech sector during late 2022 and much of 2023. 

Overall, the IDA said a reduction of those employed in the information and communication FDI sector of 2.9%.

This was mitigated by an increase in employment of 1.8% in the modern manufacturing sector and a 0.8% increase in the business, financial, and other services sector.

Enterprise Minister Simon Coveney said, despite the net losses, there are reasons for optimism in 2024 as the new 19,000 jobs announced this year across the sector will 'materialise' in the coming months and years. 

He added that the results are “indicative” of a “resilient Ireland” that remains attractive for investment despite global challenges.