International Accounts Q2 2026

Direct investment income outflows (earned on investments in Ireland by investors located abroad) were €66.1bn in the second quarter of 2026, an increase of €18.8bn compared with the last quarter. Direct investment income inflows, which represent income earned abroad by investors located in Ireland, were €18.6bn in the second quarter of 2026, a decrease of €1.3bn from the previous quarter.

The composition of direct investment income outflows is presented in Figure 4.2. Income outflows on reinvested earnings were -€1.5bn in the second quarter of 2026, an increase of €2.6bn compared with the last quarter. Dividends & distributed branch profits outflows at €65.2bn were up €15.7bn on the previous quarter while income on debt outflows at €2.4bn was up €378m.

Figure 4.3 illustrates a breakdown of direct investment income outflows between two sectors, manufacturing and information and communications. Of the €66.1bn in direct investment income outflows in the second quarter of 2026, €44.4bn can be attributed to the manufacturing sector and €13.1bn to the information and communications sector. Manufacturing sector income outflows increased by €19.2bn while information and communications sector income outflows decreased by €2.1bn when compared to the previous quarter.

Foreign direct investment (FDI) transactions abroad and in Ireland are shown in Figure 4.4. Direct investment into Ireland decreased by €17.5bn in the second quarter of 2026. Direct investment abroad increased by €19.2bn in the quarter.

The stock of FDI assets held abroad decreased from €1,231bn in Q1 2026 to €1,191bn in Q2 2026, while the stock of FDI assets held in Ireland decreased from €1,105bn in Q1 2026 to €1,040bn in Q2 2026. FDI assets held abroad by Irish investors decreased by €40.3bn, and FDI assets held in Ireland by foreign investors decreased by €64.9bn.

The impact of foreign direct investment income on the current account balance is shown in Figure 4.6. In Q2 2026 net direct investment income (FDI income inflows less FDI income outflows) was -€47.5bn while the net of all other current account components (trade in merchandise, services and other income) stood at €67.2bn. The resultant balance was a current account surplus of €19.7bn.

The impact of direct investment transactions on the financial account balance is shown in Figure 4.7. In Q2 2026 there were net flows of €36.6bn in foreign direct investment transactions while the net contribution from other financial account components (portfolio investment, other investment and reserve assets) was -€21.4bn. This contributed to a financial account surplus of €15.3bn.

The net stock of foreign direct investment assets in the net international investment position (IIP) is shown in Figure 4.8. In Q2 2026 there was a net direct investment position of €151bn. Other net IIP components (portfolio investment, other investment and reserve assets) accounted for -€451bn. The overall net IIP balance was -€300bn.

The rate of return on FDI investment in Ireland and abroad alongside the stock of FDI assets held in Ireland and abroad is presented in Figure 4.9. The rate of return is calculated as FDI income divided by FDI positions. The return on investments in Ireland is significantly higher than the return on investments made abroad. In Q2 2026 the annual rate of return on FDI investment in Ireland was 22.6% compared to 7.3% on FDI investment abroad.