Direct investment by foreign companies in the State increased by just 2 per cent or €26 billion in 2022, down from a growth rate of nearly 10 per cent between 2020 and 2021, according to figures from the Central Statistics Office (CSO), while Irish investment abroad fell.
The total stock of investment that foreign multinationals held in the Republic increased to almost €1,284 billion at the end 2022, mostly due to a jump in investment from the US offset by declines in investment from other parts of the world.
“This increase in investment is seen almost entirely in the manufacturing sector, predominantly in pharmaceuticals, which grew by €31 billion,” said Farris Bader, statistician in the CSO’s international accounts division. “A rise of €21 billion in financial intermediation was offset by declines in investment in other services sectors.”
Overall, the investment position of multinationals in the services sector, the largest for inward investment, was €749 billion, down €4 billion from the position at the end of 2021. Investment in the Republic’s manufacturing sector, meanwhile, increased by €30 billion to a stock position of €534 billion at the end of 2022.
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At the same time, Irish investment abroad fell by €190 billion to €1,125 billion, the CSO said, mostly in the services sector. Investment in Luxembourg and Asia suffered the most dramatic declines, falling €109 billion and €43 billion respectively.
Stocks of investment held by companies in the Republic in Europe fell by around 16 per cent to €816.2 billion while there was a more than €30 billion uplift in US investment stocks held by Irish enterprises to €360.9 billion at the end of the year.
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