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In order to ensure the timeliness of balance of payments statistics, the CSO publish quarterly FDI statistics in the Quarterly International Investment Position (IIP) release and in the Quarterly Balance of Payments (BOP) release. Foreign direct investment statistics are crucial components of both of these releases.
The current account consists of trade in merchandise and services, income inflows and outflows and current transfers. In Table 2a of the release, foreign direct investment income has a significant impact on the current account balance. The volatility of foreign direct investment income flows is outlined in Figure 5.1, which showed a significant increase in net FDI income outflows in 2015 and 2016, starting in Q1 of 2015. These FDI income flows played an important role in the composition of Ireland’s 2015 net factor income. For more information see this Trends in Net Factor Income (PDF 222KB) .
X-axis label | Net direct investment income | All other current account components | Current account balance |
---|---|---|---|
2012Q1 | -7.755 | 5.233 | -2.522 |
2012Q2 | -6.626 | 4.327 | -2.299 |
2012Q3 | -6.954 | 7.172 | 0.218 |
2012Q4 | -5.456 | 5.454 | -0.002 |
2013Q1 | -6.435 | 5.587 | -0.848 |
2013Q2 | -6.619 | 6.844 | 0.225 |
2013Q3 | -6.444 | 9.086 | 2.642 |
2013Q4 | -4.324 | 6.16 | 1.836 |
2014Q1 | -6.615 | 5.12 | -1.495 |
2014Q2 | -6.233 | 7.414 | 1.181 |
2014Q3 | -6.364 | 8.944 | 2.58 |
2014Q4 | -4.505 | 5.442 | 0.937 |
2015Q1 | -12.34 | 16.859 | 4.519 |
2015Q2 | -7.415 | 14.962 | 7.547 |
2015Q3 | -12.252 | 19.176 | 6.924 |
2015Q4 | -11.927 | 19.094 | 7.167 |
2016Q1 | -9.344 | 18.299 | 8.955 |
2016Q2 | -6.709 | 11.352 | 4.643 |
2016Q3 | -11.057 | 21.135 | 10.078 |
2016Q4 | -11.555 | 0.423 | -11.132 |
Source Publication: Balance of International Payments Q4 2016
Get the data: StatBank BPQ20
The financial account displays transactions in foreign assets and liabilities. In Table 2b of the release these transactions are separated by type such that the FDI transactions can be viewed as a distinct category.
Figure 5.2 shows how the financial account is impacted by large FDI transactions. Q1 of 2015 and Q4 of 2015 are especially worth noting; in Q4 of 2015 large FDI transactions into Ireland were counteracted by large Other Investment transactions, out of Ireland. In Q1 of the same year, large FDI transactions out of Ireland were offset by large Portfolio Investments (PI) into the country.
X-axis label | Net direct investment transactions | All other financial account components | Financial account balance |
---|---|---|---|
2012Q1 | -12.781 | 12.32 | -0.461 |
2012Q2 | 3.692 | -12.306 | -8.614 |
2012Q3 | -13.837 | 11.518 | -2.319 |
2012Q4 | 3.968 | -1.351 | 2.617 |
2013Q1 | -4.332 | 7.792 | 3.46 |
2013Q2 | -7.519 | 6.908 | -0.611 |
2013Q3 | -0.573 | 2.427 | 1.854 |
2013Q4 | -0.572 | 2.024 | 1.452 |
2014Q1 | 3.677 | -9.341 | -5.664 |
2014Q2 | -2.719 | 7.25 | 4.531 |
2014Q3 | 0.468 | -5.842 | -5.374 |
2014Q4 | 1.605 | -0.502 | 1.103 |
2015Q1 | 39.441 | -35.697 | 3.744 |
2015Q2 | 2.14 | 1.856 | 3.996 |
2015Q3 | 13.711 | -4.838 | 8.873 |
2015Q4 | -75.164 | 81.335 | 6.171 |
2016Q1 | 16.22 | -8.263 | 7.957 |
2016Q2 | 14.261 | -11.215 | 3.046 |
2016Q3 | 6.303 | 4.705 | 11.008 |
2016Q4 | -16.673 | -0.239 | -16.912 |
Source Publication: Balance of International Payments Q4 2016
Get the data: StatBank BPQ16
Table 2b of the Balance of Payments release also offers a breakdown of FDI flows, such that their composition can be examined on a quarterly basis. Figure 5.3 shows that the large FDI investment into Ireland consisted of both debt and equity. Years without data in Figure 5.3 are supressed in order to protect confidentiality. As FDI transactions in the Balance of Payments release are documented on a directional basis, direct investment of a foreign investor in Ireland is netted off against any investment it receives from its resident direct investment enterprise. Some components of FDI abroad can therefore be negative, and vice versa.
X-axis label | Equity and reinvested earnings abroad | Equity and reinvested earnings in Ireland | Debt instrument investment abroad | Debt instrument investment in Ireland |
---|---|---|---|---|
2012Q1 | 6.812 | -13.052 | -0.886 | -5.655 |
2012Q2 | 5.945 | -11.077 | -0.738 | 9.562 |
2012Q3 | 0 | 0 | 0 | 0 |
2012Q4 | 0 | 0 | 0 | 0 |
2013Q1 | 22.063 | -20.693 | -3.864 | -1.839 |
2013Q2 | -5.359 | -4.698 | 4.264 | -1.726 |
2013Q3 | 4.073 | -4.503 | -0.004 | -0.14 |
2013Q4 | 0.865 | -1.681 | 0.079 | 0.164 |
2014Q1 | -2.052 | -4.8 | 3.349 | 7.181 |
2014Q2 | -4.05 | -16.501 | 11.239 | 6.592 |
2014Q3 | 17.085 | -14.305 | 0.334 | -2.645 |
2014Q4 | 1.14 | -7.413 | 4.188 | 3.69 |
2015Q1 | 0 | 0 | 0 | 0 |
2015Q2 | 0 | 0 | 0 | 0 |
2015Q3 | 0.021 | -35.837 | 18.574 | 30.953 |
2015Q4 | 46.604 | -70.655 | 8.142 | -59.255 |
2016Q1 | 29.736 | -48.461 | 3.563 | 31.381 |
2016Q2 | 0 | 0 | 0 | 0 |
2016Q3 | -0.094 | -16.583 | 1.185 | 21.795 |
2016Q4 | 0 | 0 | 0 | 0 |
Source Publication: Balance of International Payments Q4 2016
Get the data: Statbank BPQ16
The IIP is a point in time statistical statement of the value and composition of the balance sheet stock of an economy's foreign financial assets (i.e. the economy's financial claims on the rest of the world) and its foreign financial liabilities (or obligations to the rest of the world). In Table 1a and Table 1b, FDI assets and liabilities are separated into a distinct category.
Figure 5.4 shows that in 2014 there was a trend during which Irish FDI assets increasingly exceeded FDI liabilities. However, this began to decline throughout 2015, to the small net negative position at the end of 2016. The corresponding transaction with respect to this trend can be seen in Figure 5.2 (above) where FDI transactions into the country increased markedly at end of year 2015.
X-axis label | Net direct investment position | All other net IIP components | Net IIP |
---|---|---|---|
2012Q1 | 16.325 | -271.103 | -254.778 |
2012Q2 | 17.008 | -268.266 | -251.258 |
2012Q3 | 14.284 | -258.804 | -244.52 |
2012Q4 | 21.838 | -262.363 | -240.525 |
2013Q1 | 28.445 | -279.989 | -251.544 |
2013Q2 | 32.45 | -287.631 | -255.181 |
2013Q3 | 36.185 | -289.93 | -253.745 |
2013Q4 | 91.575 | -328.123 | -236.548 |
2014Q1 | 109.336 | -386.227 | -276.891 |
2014Q2 | 123.59 | -423.673 | -300.083 |
2014Q3 | 124.593 | -432.614 | -308.021 |
2014Q4 | 167.478 | -479.908 | -312.43 |
2015Q1 | 101.667 | -643.84 | -542.173 |
2015Q2 | 90.581 | -601.112 | -510.531 |
2015Q3 | 41.427 | -560.18 | -518.753 |
2015Q4 | 19.558 | -550.817 | -531.259 |
2016Q1 | -21.258 | -483.974 | -505.232 |
2016Q2 | 12.604 | -500.988 | -488.384 |
2016Q3 | 32.552 | -497.509 | -464.957 |
2016Q4 | -6.471 | -485.205 | -491.676 |
Source Publication: International Investment Position and External Debt December 2016
Get the data: StatBank BPQ26
After changes in valuation and other are accounted for, Figure 5.5 shows the accumulation of the components in Figure 5.3. This data is published in Table 3a and Table 3b of the IIP release. Figure 5.5 makes it clear that over time, FDI has been primarily composed of equity investment. With that said, the debt component of FDI increased in 2015 but has declined since then.
X-axis label | Equity and reinvested earnings abroad | Equity and reinvested earnings in Ireland | Debt instrument investment abroad | Debt instrument investment in Ireland |
---|---|---|---|---|
2012Q1 | 236.816 | -265.19 | 48.375 | -3.676 |
2012Q2 | 244.835 | -279.104 | 49.411 | 1.866 |
2012Q3 | 258.328 | -287.884 | 46.197 | -2.356 |
2012Q4 | 269.818 | -293.142 | 42.478 | 2.676 |
2013Q1 | 304.13 | -315.716 | 22.817 | 17.215 |
2013Q2 | 305.067 | -313.294 | 27.059 | 13.617 |
2013Q3 | 307.239 | -308.407 | 25.009 | 12.344 |
2013Q4 | 340.246 | -307.938 | 47.742 | 11.527 |
2014Q1 | 349.616 | -313.709 | 50.595 | 22.833 |
2014Q2 | 366.06 | -334.373 | 62.03 | 29.874 |
2014Q3 | 399.721 | -367.87 | 66.02 | 26.721 |
2014Q4 | 437.273 | -372.257 | 72.905 | 29.557 |
2015Q1 | 689.853 | -422.506 | 63.684 | -229.366 |
2015Q2 | 686.777 | -439.71 | 61.135 | -217.621 |
2015Q3 | 630.453 | -473.79 | 75.531 | -190.766 |
2015Q4 | 729.484 | -546.067 | 85.718 | -249.577 |
2016Q1 | 684.388 | -564.073 | 83.956 | -225.529 |
2016Q2 | 700.259 | -559.366 | 64.877 | -193.166 |
2016Q3 | 697.474 | -594.394 | 80.83 | -151.36 |
2016Q4 | 709.764 | -669.625 | 80.239 | -126.849 |
Source Publication: International Investment Position and External Debt December 2016
Get the data: Statbank BPQ26
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