Dáil Éireann Debate, Tuesday - 21 May 2024
233. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he remains convinced that Ireland continues to be an attractive foreign direct investment location; and if he will make a statement on the matter. [22983/24]
Amharc ar fhreagraIreland’s long-standing reputation as a stable and pro-enterprise jurisdiction is reflected in the continued investment into the Irish economy. The latest figures show the stock of foreign direct investment (FDI) in Ireland stood at almost €1.3 trillion at the end of 2023.
It is important, given the impact of FDI on the domestic economy, that Ireland maintains its competitive position on an international stage. Multinational enterprises contribute greatly to the domestic economy by way of jobs, wages and tax receipts. The multinational sector supports more than 300,000 jobs according to the IDA, approximately one-eighth of our labour force, with further spillovers for jobs in the domestic sector.
However, the outlook for the international economy remains uncertain, and as a small, open economy, Ireland is particularly vulnerable to risks in the global economy. Although inflation has eased in many economies, the risk of a renewed energy price shock or of more persistent inflation remains. There is also the risk of an intensification of geo-political tensions or of weaker than expected Chinese economic growth, both of which would have implications for global economic growth.
Given that many of these factors are out of our control, it is important to focus on what we can control to ensure that Ireland retains our competitive advantage. Our strong legal and regulatory landscape, talented and flexible workforce, and our reputation as a stable economy will help us to remain an attractive location in which to invest. We will also need to continue to invest directly in critical infrastructure such as housing and health, making Ireland a competitive place to live and work in, while continuing to invest in education and skills.
The Irish economy has proven resilient in the face of numerous shocks in recent years, and I am confident that Ireland will remain a competitive and attractive location for investment. The Government is committed to creating an environment for further FDI through investment in key infrastructure and skills, while maintaining our strong legal and regulatory landscape into the future.
