Irish foreign direct investment reaches €1,217bn

In 2021 27% of Inward FDI positions were pass-through investments which can be defined as foreign multinationals investing in their Irish affiliates which then subsequently invest in another economy. Pic: Larry Cummins.

The stock of foreign direct investment (FDI) in Ireland was €1,217bn at the end of 2021, representing 285% of Gross Domestic Product, with latest figures by the Central Statistics Office showing this is more than four times the EU average.

On an ultimate investor basis, otherwise known as the firm that has the final controlling power over the immediate investor, €924bn of the Inward Investment Positions in Ireland originated in the US, reflecting 76% of the total amount.

Inward investment that ultimately originated in Ireland, or round-tripping, was €71bn or 6% of the total positions. Round-tripping refers to domestic funds which leave an economy and return back as FDI.

In 2021, 27% of Inward FDI positions were pass-through investments which can be defined as foreign multinationals investing in their Irish affiliates which then subsequently invest in another economy.

At the end of the year, Irish FDI positions abroad increased by approximately €306.9bn and FDI positions in Ireland increased by approximately €90.2bn.

Commenting on the release, Faris Bader, Statistician in the International Accounts Division said, "This experimental research has been developed to add value to official statistics pertaining to Foreign Direct Investment (FDI) and globalisation and to highlight the relevance of FDI statistics and their role in the Irish economy.

"The results also show that pass-through, which can be defined as foreign multinationals investing in their Irish affiliates which then subsequently invest in another economy, makes up 27% of inward FDI and that round-tripping, which refers to domestic funds that leave an economy and return as FDI, amounted to €71bn."