Foreign direct investment (FDI) in Ireland was equivalent to 264% of the country’s gross domestic product (GDP) in 2022, approximately four times the EU average.
The Central Statistics Office’s (CSO) Foreign Direct Investment 2022 study found that only one other country in Europe, the Netherlands at 275%, saw inward investment of a greater proportion of its GDP than Ireland.
The US accounted for approximately three-quarters (72%) of inward FDI investment (€921bn) in Ireland, and 67% of the total was concentrated among 25 firms.
In 2022, Irish FDI positions abroad decreased by €190bn, while FDI positions in Ireland increased by €26bn. As a percentage of GDP, outward foreign direct investment decreased by 81% and inward FDI decreased by 36%.
Inward investment that ultimately originated in Ireland, or round-tripping, was €56bn or 4% of the total positions. Round-tripping is when domestic funds leave the economy and then return as foreign direct investment.
30% of inward investment positions in 2022 were pass-through investment which can be defined as foreign multinationals investing in their Irish affiliates and then subsequently investing in another economy. New investment, known as greenfield FDI, accounted for €13bn.
“This experimental research has been developed to add value to official statistics pertaining to FDI and globalisation and to highlight the relevance of FDI statistics and their role in the Irish economy,” said Faris Bader, statistician in the international accounts division of the CSO.
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