Ireland slips in FDI standings

The country is ranked ninth out of 48 European countries in the latest foreign direct investment attractiveness table from EY, a fall from eighth place a year ago

The IDA is due to update on Ireland's FDI performance next month.

Ireland’s attractiveness as a location for inward foreign investment has slipped marginally in the past year, a report shows.

The country is ranked ninth out of 48 European countries in the latest foreign direct investment (FDI) attractiveness table from EY. 

While Ireland ranks first for the largest number of investment projects per million of population, the overall ranking is down from eighth 12 months earlier.

Ireland’s number of FDI projects has dropped for two years running, but EY said this is largely down to a Brexit “bounce”, which resulted in a record 205 projects in 2018.

Just last month, the IDA – which is due to update on Ireland’s FDI performance for the first half of this year next month – said Ireland is fighting for investment from a reduced flow of spending.

That was on the back of OECD data showing that global FDI flows declined by 38% in 2020, to their lowest levels for 15 years. The Government has also warned the plan for global tax reform, which has moved closer this weekend, could wipe €2bn a year from Ireland's tax income.

The EY study shows France was Europe’s top destination for FDI last year – for the second consecutive year – even though its 985 projects represented an 18% annual decline. Despite the looming impact of Brexit, the UK maintained second place.