The IDA has maintained that Ireland is still an attractive investment location for overseas companies, despite figures showing global foreign direct investment (FDI) flows fell to their lowest level since 2005 last year.
New OECD data show that global FDI flows decreased by 38% — to $846bn (€698bn) — in 2020, the lowest level for 15 years. FDI flows represented just 1% of global GDP last year, the lowest level since 1999.
An IDA spokesperson said the pandemic has had a significant impact on global FDI, but that Ireland is “fighting for investment” from a reduced flow of spending.
“Post-Covid, many countries are looking to FDI to increase their self-sufficiency and security and bolster economies decimated by the pandemic," they said.
The IDA said Ireland's attractiveness to outside investors is still there despite the tightening of competition.
“Ireland is a high-value location. We are fortunate to have many factors in our favour for investors considering internationalising their business and looking for a suitable location in which to do so.
FDI into the OECD’s 37 member countries — which includes Ireland — fell by 51% last year, partly due to significant divestments from Switzerland and the Netherlands. Investment outflows from OECD countries, meanwhile, fell by 48% — again largely driven by significant divestments made by companies in the Netherlands.
China overtook the US as the top destination for FDI worldwide in 2020, the OECD said.