IDA Ireland reports strong 2023 outlook despite FDI drop

5 Jul 2023

Simon Coveney, TD at IDA Ireland event. Image: Maxwell Photography

The state agency reports Ireland won 139 investments in the first half of the year, with a potential of creating up to 12,000 jobs.

IDA Ireland claims the outlook for foreign direct investment (FDI) into the country remains strong, despite a drop in the number of investment deals so far this year.

The agency’s latest figures state that the country received 139 investments in the first half of 2023. This result was in line with IDA Ireland’s expectations, but it is a drop from the 155 investments reported in the same period last year.

The state agency said these 139 investments have an employment potential of up to 12,000 jobs nationwide. More than 50 of these investments were from new names, while nearly half of the deals were approved for regional locations.

IDA Ireland also claims there was an increased scale and complexity to the types of investment being secured, reflecting the country’s strength as a location for major projects.

Some of the biggest investments include Analog Devices investing €630m at its European regional headquarters in Limerick, Dexcom’s planned €300m investment in Galway and PepsiCo investing €127m in its Cork manufacturing facility.

Other notable deals include Siemens expanding its Swords site with a centre of excellence, ABB opening a Dundalk R&D centre and Boston Scientific expanding its Clonmel site with an €80m investment.

Minister for Enterprise, Trade and Employment Simon Coveney, TD, said the level of performance has been “largely maintained” from the record figures of 2022, despite “significant challenges” in the global economy.

“While there are some other economic headwinds ahead, including persistently high inflation, Ireland continues to win international investment due to our highly educated and talented workforce and because of our stable pro-business environment,” Coveney said.

IDA Ireland CEO Michael Lohan noted that foreign investment has been steady despite global issues such as inflation, supply chain challenges, energy issues and the “ongoing Russia-Ukraine conflict”.

“As we seek to lay the foundations for continued growth and transformation in the FDI base in the years ahead, our success will depend on progress towards enhancing the carrying capacity of the economy in the immediate and medium-term,” Lohan said. “The key areas requiring attention remain planning, housing, energy, water and wider infrastructure.”

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Leigh Mc Gowran is a journalist with Silicon Republic