International Accounts Q3 2025

Direct investment income outflows (earned on investments in Ireland by investors located abroad) were €66.8bn in the third quarter of 2025, an increase of €656m compared with the second quarter. Direct investment income inflows, which represent income earned abroad by investors located in Ireland, were €19.4bn in the third quarter of 2025, an increase of €2.9bn from the previous quarter.

The composition of direct investment income outflows is presented in Figure 4.2. Income outflows on reinvested earnings were €31bn in the third quarter of 2025, an increase of €69.2bn compared with the second quarter. Dividends & distributed branch profits outflows at €33.5bn were down €68.7bn on the previous quarter while income on debt outflows at €2.2bn was up €116m.

Figure 4.3 illustrates a breakdown of direct investment income outflows between two sectors, manufacturing and information and communications. Of the €66.8bn in direct investment income outflows in the third quarter of 2025, €45.4bn can be attributed to the manufacturing sector and €14.4bn to the information and communications sector. Manufacturing sector income outflows increased by €1.8bn while information and communications sector income outflows decreased by €2bn 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 increased by €18.7bn in the third quarter of 2025. Direct investment abroad decreased by €393m in the quarter.

The stock of FDI assets held abroad decreased from €1,138bn in Q2 2025 to €1,112bn in Q3 2025, while the stock of FDI assets held in Ireland increased from €1,006bn in Q2 2025 to €1,041bn in Q3 2025. FDI assets held abroad by Irish investors decreased by €26.3bn, and FDI assets held in Ireland by foreign investors increased by €35.2bn.

The impact of foreign direct investment income on the current account balance is shown in Figure 4.6. In Q3 2025 net direct investment income (FDI income inflows less FDI income outflows) was -€47.3bn while the net of all other current account components (trade in merchandise, services and other income) stood at €61.3bn. The resultant balance was a current account surplus of €13.9bn.

The impact of direct investment transactions on the financial account balance is shown in Figure 4.7. In Q3 2025 there were net flows of -€19.1bn in foreign direct investment transactions while the net contribution from other financial account components (portfolio investment, other investment and reserve assets) was €25.6bn. This contributed to a financial account surplus of €6.5bn.

The net stock of foreign direct investment assets in the net international investment position (IIP) is shown in Figure 4.8. In Q3 2025 there was a net direct investment position of €70.4bn. Other net IIP components (portfolio investment, other investment and reserve assets) accounted for -€400bn. The overall net IIP balance was -€330bn.

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 2025 the annual rate of return on FDI investment in Ireland was 27.2% compared to 7.2% on FDI investment abroad.