IDA Ireland, the inward investment agency of the Irish Government, today reported significant investment growth in the first half of 2022, returning FDI employment creation plans to above the pre-pandemic 2019 record levels, despite a continuing challenging global environment.
155 investments were won, with associated employment potential of over 18,000 jobs. 73 were new name investments who went to regional locations. Several investments approved and announced in the first half of the year involve large job numbers and significant capital investments.
Speaking at the launch of IDA Ireland’s 2021 Annual Report, Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar said, “These are incredible results. We had a record year last year for foreign direct investment and now, today, we see that we’ve exceeded that again in the first six months of the year with investment up 9% on last year. That’s around 18,000 new jobs. Given everything that’s happened over the last few years that really is remarkable. It’s showing no sign of slowing down. We should never forget that the jobs and revenue created by multinationals helped to keep us out of recession when the pandemic hit and are now giving us the financial firepower to ease the cost of living crisis and avoid recession once again.
We’ve worked hard to create a welcoming environment for FDI in all parts of the country and the strong regional spread of jobs and investment in today’s results demonstrates government policy, with 73 of the 155 investments outside of Dublin. We want long-term sustainable jobs, work that pays better, in every county in the country. That is our objective and I’m glad to see that reflected in the results today.”
Martin Shanahan, CEO IDA Ireland said, “These are very strong half year results achieved against a backdrop of a global pandemic, Brexit, considerable geo-political uncertainty globally, inflationary pressures, supply chain challenges, climate change and energy issues and, since the start of the year, Russia’s invasion of Ukraine. It shows the endurance and strength of the FDI sector with 155 investments approved so far this year compared to 142 for the same period in 2021. The associated employment potential is up significantly, at over 18,000, compared to over 12,530 in H1 2021. Both investments and employment potential are now ahead of 2019 pre-pandemic levels. It’s proof that our strategy of continuing to concentrate on core sectors of focus, which have proven durability, is the correct one. Winning investments for regional locations across Ireland is another key focus for IDA and once again, in the first half of 2022 we see it yielding very good results, with 73 of the 155 – that’s 47% of investments – approved for outside of Dublin.
Ireland’s existing base of foreign direct investment is a core national asset that we cannot take for granted. The benefit of FDI, as outlined in the IDA’s annual report 2021 launched today, shows the many contributions that FDI makes to the economy, including direct and indirect employment, 72% of export sales, 70% of corporation tax, and direct expenditure on pay, materials and services totalling €27.9bn.
Investors’ commitment to Ireland remains strong. The country’s value proposition as a place in which to do business remains, as evidenced by these results, a compelling one. 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. The key areas requiring attention remain Planning, Housing, Energy, Water and wider infrastructure. Policies that support the continued availability of talent are also critical. Managing costs in the current inflationary environment and executing on planned capital projects will be challenging, but important for Ireland’s continued competitiveness.”
Tanaz Buhariwalla, India Director IDA Ireland said, “The mid-year results successfully showcase yet another milestone for IDA Ireland. Despite the current geopolitical turmoil and ongoing COVID-19 disruptions, the country has positively sustained its FDI performance with robust strategies.
In this journey, Indian companies have continued their commitment and support with their presence in Ireland. We are confident that Ireland will keep up its resilience and be consistent in sustaining and promoting a pro-business environment. We believe this successful trend will continue with more positive results in future.”