Foreign direct investment into Ireland jumped by 21% last year, according to a new analysis.
The EY European Attractiveness Survey shows that 184 new and expansion projects were announced during the year, up from 152 the previous year.
This puts Ireland in the top ten most attractive locations for investments across Europe, the report claims.
Across Europe, FDI increased by just 1%.
“Ireland consistently punches above its weight in attracting FDI,” said Feargal de Freine, Assurance Partner at EY Ireland.
“The latest EY European Attractiveness Survey demonstrates the enduring appeal that Ireland’s open access to global markets, highly skilled and educated workforce, attractive lifestyle, and competitive and transparent tax regime holds for foreign direct investment.”
Half of the new or expanded projects here were located outside of the capital.
31% were in software and IT services, compared to 20% of the new and expansion projects in Europe.
Business and professional services was the second largest sector for projects in both Europe and Ireland.
Large US firms accounted for 59% of the investments while UK corporates made up 15%.
“The survey underlines Ireland’s status as an established location of choice for US and UK multinationals in key sectors such as software, business services, medtech, and pharmaceuticals,” explained Mr de Freine.
“That status is built on Ireland’s clear strategy regarding inward investment, the consistently compelling proposition for prospective investors, and sustained excellence in both attracting new investors and facilitating the expansion of existing operations.”
The report finds there were 5,962 FDI projects announced for 44 European countries last year by businesses from all over the world.
France remains Europe’s most popular destination for FDI, up 3% on last year, with the UK placing second and Germany in third.
However, several Southern Central and Eastern European states, including Italy, Poland, Portugal, Romania and Turkey, also recorded strong growth in FDI numbers in 2022.
The analysis finds the FDI outlook for Ireland and Europe is positive for this year.
67% of the global investors surveyed for the report indicated “plans to establish or expand operations in Europe over the next year”.
In Ireland, 71% of established companies surveyed plan to increase their investment in the country over the next year.
Article Source: FDI into Ireland grew by 21% last year – Will Goodbody – RTE