Dáil Éireann Debate, Thursday - 16 June 2022
199. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which this country continues to remain an attractive location for foreign direct investment; and if he will make a statement on the matter. [31608/22]
Amharc ar fhreagra205. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which Ireland continues to compete with competition for foreign direct investment; the most likely directly from when he expects any challenges; and if he will make a statement on the matter. [31614/22]
Amharc ar fhreagraI propose to take Questions Nos. 199 and 205 together.
Ireland has long established itself as a market of choice for foreign direct investment and FDI makes a highly significant contribution to the domestic economy. Ireland’s ability to attract and retain FDI reflects our strong legal and regulatory landscape, our track record as a stable and pro-enterprise jurisdiction, and our talented and flexible workforce. These unique features continue to support our competitive advantages, which are recognised and valued by the multinational sector.
During the Covid-19 pandemic, the resilience of the multinational sector proved remarkable, with the sector supporting the economy during the worst of the crisis and now helping to bolster the economic recovery.
The stock of FDI in Ireland continues to grow, reaching over €1,200bn in the first quarter of 2022. Last year, the Industrial Development Agency reported the highest increase in FDI employment in a single year, indicative of the strength of the FDI sector in Ireland.
Against the backdrop of current geopolitical instability and uncertainty, the FDI environment is likely to face challenges over the coming years. The war in Ukraine may result in a reconfiguration of the global economy while at the same time the pandemic has dealt a significant blow to globalisation. The extent to which this transpires will only be seen with time, but deglobalisation – should it occur – could result in lower levels of global FDI, with impacts on living standards and productivity in host countries.
Given that a number of these factors are beyond our control, we must focus on the factor we can control, ensuring that Ireland remains an attractive environment for FDI investment.
