Dáil Éireann Debate, Thursday - 23 November 2023
186. Deputy Bernard J. Durkan asked the Minister for Finance the degree to which Ireland remains an attractive investment location from the point of view of international investors; and if he will make a statement on the matter. [51760/23]
View answerIreland remains an attractive location for international investors, with the stock of FDI in Ireland at over €1.3 trillion at the end of 2022. I am conscious of the need to maintain our competitive position globally, given the important contribution that this FDI makes to the domestic economy.
Indeed, the IDA reported the highest ever increase in FDI-related employment last year, with a 9 per cent increase in employment on 2021. The IDA estimates that the multinational sector directly employs more than 300,000 people, approximately one-eighth of our labour force, with further spillovers for jobs in the domestic sector. Furthermore, multinational enterprises contribute to the domestic economy via income and corporation tax receipts.
Despite challenging headwinds, modified investment – i.e. investment adjusted for globalisation related distortions - increased by 16 per cent in 2022 alone, with contributions from both the domestic and multinational sectors. In particular, we have seen the large scale investment in expanding production capacity in Ireland. This investment will bring increased employment and exports in the years ahead.
It is important that we continue to invest in key infrastructure and skills, in order to retain Ireland’s competitive advantage in attracting FDI. Our strong legal and regulatory landscape, talented and flexible workforce, membership of the European single market, and our reputation as a stable economy will help us to remain competitive in this regard.
As a small, open economy, Ireland is particularly exposed to risks in the global economy, including further shocks to energy supplies and heightened geopolitical tensions, and continued investment will be crucial in supporting the domestic economy. This Government will continue to monitor risks to our competitiveness and to support sustained investment in the year ahead.
