The share of US FDI in Europe that Ireland is attracting has steadily increased in recent years according to a new report commissioned by the American Chamber of Commerce Ireland. The Irish-US Economic Relationship 2016 researched and written by US academic and Wall Street economist Joseph Quinlan, was launched today at the American Chamber 2016 President’s Lunch in the Intercontinental Hotel, Dublin.
Ireland US Economic Relationship 2016
Ireland now accounts for nearly 20% of all new U.S. investment flows to Europe, according to figures contained within the report. This compares favourably against France (3%) and Germany (2%) and Ireland’s share of the total U.S. investment stock in Europe has soared to 11% over the past decade and increased from 6% ten years ago.
Other key findings from the report include:
- U.S. investment flows to China in the first nine months of 2015 were just 16.8% of those to Ireland in the same period.
- Ireland’s investment stakes in the U.S. are significant as well, with Irish affiliates estimated to have generated some $90 billion in sales from their US operations in 2014 and $35 billion in U.S. economic output.
- At the end of 2014 U.S. direct investment stock in Ireland was a record $310 billion.
- U.S. investment flows to Ireland surged to a record $58.1 billion in 2014.
Joseph Quinlan discussing prospects for the future says “Ireland and the United States now stand as two of the strongest growing economies in the transatlantic economy. Ireland in a world of increasing disorder and unrelenting change, remains one of the prime destinations of U.S. foreign direct investment (FDI). Yes, there has been a great deal of churn and change in the global economy since our last report. But what has not changed is international investors’ overriding preference for doing business in Ireland. Various metrics point towards Ireland and the United States deepening their well-established trade and investment linkages.”
President Bob Savage
Bob Savage, President, American Chamber of Commerce in Ireland, welcomed the report’s findings saying: “We are delighted to hear the positive story Joseph Quinlan has told today of the highly successful US-Ireland economic relationship. Our small country with a population that is less than 1% of the European total now accounts for 11% of US FDI on this side of the Atlantic. Last year alone, the IDA had a record year, announcing 19,000 new jobs – three quarters of those from US companies.”
“To maintain and strengthen our success in the global battle for FDI, our nation must continually reassess the needs of business, both domestic and multinational. We believe Ireland can continue to compete strongly on the international stage continuing to attract strong US FDI over the coming decade.”
Mr. Savage outlined some of the challenges for Ireland which the Chamber believes need to be addressed in order to achieve this, including:
Ensuring our education system is challenged to produce graduates with the skillsets that business needs
Ensuring Ireland has a sufficient supply of quality, affordable and well serviced accommodation for all those who want to build a great career in Ireland.
- The American Chamber is fully behind the ambition of Government, IDA and Enterprise Ireland to grow jobs nationally and not just in our major cities.
- The American Chamber is committed to building greater links between the multinational community and local SMEs.
- The American Chamber also believes that Ireland has the opportunity to become a global centre of excellence for data innovation.
The American Chamber looks forward to working with Enterprise Ireland, IDA Ireland, our education sector and Government in playing its part to the full.
Today’s event was sponsored by Barclays.