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Introduction

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Foreign direct investment is a category of cross-border investment made by a resident in one economy (the direct investor) with the objective of establishing a lasting interest (at least a ten percent stake) in an enterprise in another nation’s economy (the direct investment enterprise). This thematic publication contains statistics pertaining to FDI, globalisation and their role in the Irish economy.

In 2020, Irish FDI positions abroad decreased by approximately €14 billion, and FDI positions in Ireland increased by approximately €16.9 billion (see Figure 1.1). As a percentage of GDP, outward FDI decreased by 9 percentage points and inward FDI increased by 14 percentage points. 

This experimental research has been developed to add value to official statistics by linking FDI figures across domains, namely to employment data from Revenue. The results presented in this publication represent initial cross-themed work from these domains of official statistics and are intended to highlight the relevance of FDI statistics more broadly. Users can also find analysis of quarterly FDI statistics in the International Accounts publication.

FDI Positions Abroad (left axis)FDI Positions Inward(left axis)Outward, % of GDP (right axis)Inward, % of GDP (right axis)
2013387.758300.733215.881658649563167.431075182612
2014509.706354.045261.18811779717181.42291274872
2015835.53817.58317.869683815669311.040771838252
2016812.639797.521300.077175879768294.494664155681
2017822.832882.171273.923971410214293.678155179818
2018834.32879654938.95682628259.272118316045280.899086620742
2019989.6388737971109.9271.128532360984287.718673304817
2020975.6243723139721126.79702362917261.653388271477302.196488211455

Source Publications: Foreign Direct Investment AnnualNational Income and Expenditure Annual

Get the data: PXStat BPA34PXStat NQQ35

The OECD Benchmark Definition of Foreign Direct Investment (4th Edition, BMD4) prescribes a number of indicators for the level of globalisation in an economy. The following metrics allow for cross-country comparisons based on the relative importance of FDI: Inward FDI positions in reporting economies and inward FDI flows expressed as a percentage of GDP at current prices (Figures 1.2 and 1.3). As these measures focus on the investment, they reveal how much foreign ownership exists in an economy.

FDI Inwards, % of GDP
Luxembourg766.9
Ireland324.7
Netherlands312.4
Estonia110.1
Belgium100.8
United Kingdom82
Czech Republic76.9
Portugal76.9
Sweden71.2
Hungary65.4
Spain63.7
Slovakia61.4
Latvia61.3
Lithuania52.6
Austria48.2
Norway46.8
Poland42.3
Denmark41.7
Slovenia38.4
France36.6
Finland32.6
Germany29.4
Italy24.9
Greece21.9

Get the data: OECD Stat

As illustrated in Figure 1.2, foreign investors have a significant role in Irish business. Figure 1.3 shows FDI flows in 2020 as a percentage of GDP. FDI flows for 2020 were down from the previous year. As seen in both Figures 1.2 and 1.3, Ireland is one of the most globalised nations in Europe. For a breakdown of these flows and positions by geography and investment type see the 2020 Foreign Direct Investment release.

FDI Inwards Flows, % of GDP
Luxembourg77.825
Ireland19.282
Estonia11.053
Lithuania6.235
Hungary4.336
Sweden3.474
Portugal3.144
Latvia3.017
Belgium2.694
Czech Republic2.564
Poland2.291
Greece1.692
Spain0.984
Germany0.925
Denmark0.902
United Kingdom0.672
Slovenia0.388
France0.185
Finland-0.524
Norway-1.129
Italy-1.249
Slovakia-1.842
Austria-3.472
Netherlands-13.845

Get the data: OECD Stat

Figure 1.4 illustrates a distributional analysis of FDI into Ireland. Firms are sorted by the size of their inward FDI investments and then grouped. As illustrated, the first group of 25 firms makes up 68% of Ireland’s inward FDI. This shows how highly concentrated Irish FDI is given that there are thousands of firms that receive FDI investments in Ireland.

 

% of total FDI
Top 2567.524636683178
26-5016.5890089012528
51-757.76480513456518
76-1003.86143008841371
101+4.26011919259029

Figure 1.5 shows Irish FDI Abroad by an Ultimate Controlling Parent presentation. Figure 1.1 shows that Irish FDI abroad can be higher, for certain years, than the FDI position in Ireland. This is determined to a large extent by Redomiciled PLCs in Ireland. Figure 4.6 in the Redomiciled PLC chapter shows that these companies own more than half of Irish FDI positions abroad. For confidentiality purposes, data in 2015, 2016, 2017 are redacted for US and other ultimately owned Irish resident investment abroad.

IrelandUnited StatesOther
2012157.5772280893.86732599360.859636547
2013237.5982992994.47647046955.683210611
2014362.8821069772.85994916673.963703644
2015593.4764982600
2016570.7889150100
2017490.8601906800
2018564.5928962979216.061871575153.67402866709
2019751.1961371214186.164688687552.2780479879
2020664.787858638283.655636038227.1806837854

Get the data:  PXStat BPQ26

The direct investment figures depicted on this publication's infographic were presented according to the location of the Ultimate Controlling Parent. The FDI positions of the top ultimate investing countries are presented in Figure 1.6. As illustrated, the United States is the biggest investor in Ireland, accounting for over €800 billion of our inward FDI positions. The figure for the Netherlands is redacted for confidentiality purposes.

Inward FDI Positions
United States838.52454413255
Ireland57.452048778
Japan31.35431292075
Bermuda31.257279885
Canada19.11121560902
China17.91764988305
United Kingdom14.87821772504
France14.83989147878

Source Publications: Foreign Direct Investment Annual