Inflows | Outflows | |
Q2 2022 | 13.235 | 48.293 |
Q3 2022 | 4.814 | 47.59 |
Q4 2022 | 10.372 | 47.701 |
Q1 2023 | 13.69 | 55.304 |
Q2 2023 | 16.84 | 45.703 |
Q3 2023 | 16.498 | 43.823 |
Q4 2023 | 20.3 | 40.7 |
Q1 2024 | 17.758 | 48.814 |
Q2 2024 | 17.964 | 43 |
Q3 2024 | 18.836 | 48.988 |
Direct investment income outflows (earned on investments in Ireland by investors located abroad) were €49bn in the third quarter of 2024, an increase of €6bn compared with the second quarter of 2024. Direct investment income inflows, which represent income earned abroad by investors located in Ireland, were €18.8bn in the third quarter of 2024, an increase of €872m from the previous quarter.
Income on Debt Outflows | Reinvested Earning Outflows | Dividends & Distributed Branch Profits Outflows | |
Q2 2022 | 2.591 | 38.954 | 6.748 |
Q3 2022 | 3.064 | 25.529 | 18.998 |
Q4 2022 | 3.724 | 11.988 | 31.988 |
Q1 2023 | 3.711 | -3.378 | 54.97 |
Q2 2023 | 3.739 | -37.601 | 79.565 |
Q3 2023 | 3.496 | 12.6 | 27.727 |
Q4 2023 | 3.92 | 23.693 | 13.087 |
Q1 2024 | 3.157 | 7.263 | 38.395 |
Q2 2024 | 3.084 | 0.258 | 39.658 |
Q3 2024 | 2.588 | 4.258 | 42.142 |
The composition of direct investment income outflows is presented in Figure 4.2. Income outflows on reinvested earnings were €4.3bn in the third quarter of 2024, an increase of €4bn compared with the second quarter of 2024. Dividends & distributed branch profits outflows at €42.1bn were up €2.5bn on the previous quarter while income on debt outflows at €2.6bn were down €496m.
Direct Investment Income Outflows | of which Manufacturing | of which Information and Communications | |
Q2 2022 | 48.293 | 30.299 | 7.176 |
Q3 2022 | 47.59 | 34.778 | 7.15 |
Q4 2022 | 47.701 | 30.121 | 11.101 |
Q1 2023 | 55.304 | 36.877 | 9.595 |
Q2 2023 | 45.703 | 24.527 | 12.984 |
Q3 2023 | 43.823 | 24.11 | 10.044 |
Q4 2023 | 40.7 | 19.951 | 11.67 |
Q1 2024 | 48.814 | 28.111 | 12.269 |
Q2 2024 | 43 | 23.669 | 10.369 |
Q3 2024 | 48.988 | 31.861 | 11.148 |
Figure 4.3 illustrates a breakdown of direct investment income outflows between two sectors, manufacturing and information and communications. Of the €49bn in direct investment income outflows in the third quarter of 2024, €31.9bn can be attributed to the manufacturing sector and €11.1bn to the information and communications sector. Manufacturing sector income outflows increased by €8.2bn while information and communications sector income outflows increased by €779m when compared to the previous quarter.
Abroad | In Ireland | |
Q2 2022 | -3.873 | -25.961 |
Q3 2022 | -14.088 | 11.006 |
Q4 2022 | -19.228 | -31.184 |
Q1 2023 | 13.325 | -0.484 |
Q2 2023 | -36.523 | -44.502 |
Q3 2023 | 5.693 | 26.266 |
Q4 2023 | 27.946 | 16.244 |
Q1 2024 | 12.993 | -1.218 |
Q2 2024 | 14.018 | -21.684 |
Q3 2024 | 7.588 | 11.261 |
Foreign direct investment (FDI) transactions abroad and in Ireland are shown in Figure 4.4. Direct investment into Ireland increased by €11.3bn in the third quarter of 2024. Direct investment abroad increased by €7.6bn in the quarter.
Abroad | In Ireland | |
Q2 2022 | 1225.185 | 1383.579 |
Q3 2022 | 1236.156 | 1464.696 |
Q4 2022 | 1210.999 | 1350.229 |
Q1 2023 | 1238.942 | 1320.828 |
Q2 2023 | 1243.207 | 1281.85 |
Q3 2023 | 1227.949 | 1321.016 |
Q4 2023 | 1248.317 | 1299.937 |
Q1 2024 | 1249.331 | 1187.839 |
Q2 2024 | 1286.675 | 1150.428 |
Q3 2024 | 1178.958 | 1060.594 |
The stock of FDI assets held abroad decreased from €1,287bn in Q2 2024 to €1,179bn in Q3 2024, while the stock of FDI assets held in Ireland decreased from €1,150bn in Q2 2024 to €1,061bn in Q3 2024. FDI assets held abroad by Irish investors decreased by €107.7bn, and FDI assets held in Ireland by foreign investors decreased by €89.8bn.
Net Direct Investment Income | All Other Current Account Components | Current Account Balance | |
Q2 2022 | -35.058 | 47.302 | 12.244 |
Q3 2022 | -42.776 | 53.713 | 10.937 |
Q4 2022 | -37.329 | 45.214 | 7.884 |
Q1 2023 | -41.614 | 53.419 | 11.805 |
Q2 2023 | -28.863 | 40.211 | 11.348 |
Q3 2023 | -27.325 | 45.955 | 18.629 |
Q4 2023 | -20.4 | 19.88 | -0.52 |
Q1 2024 | -31.056 | 45.947 | 14.891 |
Q2 2024 | -25.036 | 60.517 | 35.481 |
Q3 2024 | -30.152 | 53.13 | 22.978 |
The impact of foreign direct investment income on the current account balance is shown in Figure 4.6. In Q3 2024 net direct investment income (FDI income inflows less FDI income outflows) was -€30.2bn while the net of all other current account components (trade in merchandise, services and other income) stood at €53.1bn. The resultant balance was a current account surplus of €23bn.
Net Direct Investment Transactions | All Other Financial Account Components | Financial Account Balance | |
Q2 2022 | 22.088 | -18.041 | 4.048 |
Q3 2022 | -25.094 | 35.019 | 9.923 |
Q4 2022 | 11.956 | -1.056 | 10.9 |
Q1 2023 | 13.809 | -8.086 | 5.723 |
Q2 2023 | 7.979 | -4.396 | 3.58 |
Q3 2023 | -20.573 | 38.96 | 18.387 |
Q4 2023 | 11.702 | -2.474 | 9.229 |
Q1 2024 | 14.211 | -3.421 | 10.789 |
Q2 2024 | 35.702 | -1.507 | 34.196 |
Q3 2024 | -3.673 | 26.472 | 22.797 |
The impact of direct investment transactions on the financial account balance is shown in Figure 4.7. In Q3 2024 there were net flows of -€3.7bn in foreign direct investment transactions while the net contribution from other financial account components (portfolio investment, other investment and reserve assets) was €26.5bn. This contributed to a financial account surplus of €22.8bn.
Net Direct Investment Position | All Other Net IIP Components | Net IIP | |
Q2 2022 | -158.394 | -426.82 | -585.214 |
Q3 2022 | -228.54 | -407.913 | -636.453 |
Q4 2022 | -139.23 | -435.535 | -574.765 |
Q1 2023 | -81.886 | -455.599 | -537.485 |
Q2 2023 | -38.643 | -507.275 | -545.918 |
Q3 2023 | -93.067 | -447.985 | -541.052 |
Q4 2023 | -51.62 | -465.366 | -516.986 |
Q1 2024 | 61.492 | -534.36 | -472.868 |
Q2 2024 | 136.247 | -593.753 | -457.506 |
Q3 2024 | 118.364 | -531.542 | -413.178 |
The net stock of foreign direct investment assets in the net international investment position (IIP) is shown in Figure 4.8. In Q3 2024 there was a net direct investment position of €118.4bn. Other net IIP components (portfolio investment, other investment and reserve assets) accounted for -€531.5bn. The overall net IIP balance was -€413.2bn.
Direct Investment Position Abroad (left axis) | Direct Investment Position In Ireland (left axis) | Return on FDI Abroad (right axis) | Return on FDI in Ireland (right axis) | |
Q2 2022 | 1225.185 | 1383.579 | 3.27428102694695 | 11.7814017125152 |
Q3 2022 | 1236.156 | 1464.696 | 3.29917906801407 | 12.3201674613708 |
Q4 2022 | 1210.999 | 1350.229 | 3.19537836117123 | 14.1723366925166 |
Q1 2023 | 1238.942 | 1320.828 | 3.39894845763563 | 15.057827362836 |
Q2 2023 | 1243.207 | 1281.85 | 3.67726372197068 | 15.3136482427741 |
Q3 2023 | 1227.949 | 1321.016 | 4.67446123576793 | 14.574463897485 |
Q4 2023 | 1248.317 | 1299.937 | 5.39350181083811 | 14.2722301157671 |
Q1 2024 | 1249.331 | 1187.839 | 5.71473852806022 | 15.0727497581743 |
Q2 2024 | 1286.675 | 1150.428 | 5.63623292595255 | 15.3279475117087 |
Q3 2024 | 1178.958 | 1060.594 | 6.34950524106881 | 17.1132403162756 |
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 Q3 2024 the annual rate of return on FDI investment in Ireland was 17.1% compared to 6.3% on FDI investment abroad.
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