CSO: FDI positions in Ireland increased by nearly €17bn

Google is one of the hundreds of companies that contribute to Ireland's FDI. Picture: PA

Foreign Direct Investment (FDI) positions in Ireland increased by approximately €16.9bn in 2020, according to figures released by the Central Statistics Office today (CSO). 

As a percentage of GDP, inward FDI increased by 14% while outward FDI decreased by 9%. 

Irish FDI positions abroad declined by €14bn in 2020.

Total FDI positions inward amounted to approximately €1,126.8bn, while overall FDI positions abroad totalled €975.6bn.

The United States is Ireland's biggest investor. FDI from the US in Ireland was recorded at €839bn in 2020 while there were 87,473 employees of Irish affiliates in the US.

FDI from the UK in Ireland amounted to €15bn and there were 96,416 employees of Irish affiliates in the UK during 2020.

The US is also one of Ireland's leading partner countries for FDI investment alongside Bermuda and the Netherlands.

Inward FDI in Ireland amounts to 324.7% of the country's GDP. CSO stated that these figures make Ireland "one of the most globalised nations in Europe".

Irish FDI is highly concentrated with some 25 firms making up 68% of Ireland’s inward FDI.

Pass-through investment, a process whereby foreign multinationals invest in their Irish affiliates and then subsequently invest in another economy, made up 23% of inward FDI in 2020.

In 2020, Irish FDI positions abroad decreased by approximately €14 billion, and FDI positions in Ireland increased by approximately €16.9 billionhttps://t.co/xxajMBSVKS #CSOIreland #Ireland #BalanceofPayments #Economy #Economics #Macroeconomics #EconomicIndicators pic.twitter.com/CgOTZJk1I9

— Central Statistics Office Ireland (@CSOIreland) June 27, 2022

Income inflows from Irish FDI - otherwise known as profit earned on Irish investment abroad - recorded the highest level of investments in Luxembourg, the US and the Netherlands on an immediate investor partner country basis.

The CSO defines foreign direct investment as: "A category of cross-border investment made by a resident in one economy (the direct investor) with the objective of establishing a lasting interest (at least a 10% stake) in an enterprise in another country’s economy (the direct investment enterprise)."