IDA Ireland announces 2023 mid-year results

by Priya Jadhav 

Strong level of investment wins over the first half of 2023, in line with expectations 

Number of strategic capital-intensive and innovation investments announced 

Job and regional approvals remain strong 

FDI base proved to be resilient and impactful

Performance to end H1 2023

⁻          139 investments won in the first half of 2023, with associated employment potential of over 12,000 jobs

⁻           52 new name investments and 67 (48%) of investments were approved for regional locations

⁻           Investment and job results as expected in line with the strong investment flows seen since 2015

⁻           Increased scale and complexity to the types of investment being secured, reflecting Ireland’s strengths as a location to implement major projects

⁻           25 Research, Development and Innovation (RD&I) projects and 13 sustainability projects won in 2023 to date, outpacing results in same period last year as clients increase focus on transformational investments

⁻           Healthy performance against a backdrop of a fragile global economy, with flat FDI into Europe, demonstrating continued resilience and growth across IDA’s sectors of focus

Outlook

⁻          Some improvement in the global economy, however ongoing headwinds including persistently high inflation and downside risks including geopolitical uncertainty

⁻          International investment landscape continues to evolve amid more active industrial policy in strategic sectors and the acceleration of green and digital transitions

⁻          Following the mid-term review of IDA’s 2021-24 strategy, IDA will renew its focus on transformational investments in RD&I, digitalization, talent development & sustainability to support enhanced competitiveness of MNC’s Irish operations

⁻          IDA will also adopt a ‘mission-oriented’ focus on strategic growth opportunities in renewable energy and strategic technology clusters, aligned to objectives of the Irish Government’s White Paper on Enterprise

⁻          Provided enabling infrastructure challenges in the economy are urgently addressed, FDI is well placed to continue to drive growth and to support the decarbonization and digitalization of the economy

July 6th, 2023 Mumbai. IDA Ireland, the inward investment agency of the Irish Government, today reported steady investment growth in the first half of 2023. Investments won over the first half of 2023 are tracking in line with our expectations of a positive pipeline. The outlook for investments over the second half of the year remains strong. IDA Ireland continues to engage with clients across all sectors, who collectively play a crucial role in supporting Irish economic growth.

In the first half of 2023, 139 investments were won, with the potential of 12,072 jobs. 52 were new name or first-time investments, while 67 (48%) of the 139 investments went to regional locations.

Tanaz Buhariwalla, India Director, IDA Ireland said- “We are pleased to announce IDA Ireland’s strong mid-year results. The number of strategic, capital-intensive and innovation investments that Ireland has won in the last six months reflects Ireland's attractiveness as a location for major projects. Companies from India's booming digitization economy and thriving lifesciences sector find Ireland attractive to establish in and expand their European base from. Ireland's strength remains evident given this healthy performance comes against a backdrop of fragile global economy, with flat FDI into Europe.  Ireland remains committed to prioritize capacity-building, talent availability, and cost management to ensure sustained competitiveness, demonstrate continued resilience and retain the strength it has.”

Michael Lohan, CEO of IDA Ireland said: “These are strong half year results achieved against a backdrop of considerable global geo-political uncertainty, ongoing inflationary pressures, supply chain challenges, climate change and energy issues, as well as the ongoing Russia Ukraine conflict. The results show the endurance and strength of the FDI sector with 139 investments approved so far this year with associated employment figures remaining strong, at over 12,000 jobs approved.”

“Ireland is an established top tier investment location for multinationals who choose us because of our consistent, stable, pro-business landscape, our high level of education, our ability to attract and retain talent, and the flexibility and agility of our skilled workforce. Central to Ireland’s continued success will be embracing transformation to enable our economy, our enterprise base, and our people to thrive in a world where companies who do not progress on the paths of digitalisation and decarbonisation will be left behind. In this context, the ambition of the Government’s White Paper on Enterprise in setting a vision for enterprise policy to 2030 is welcome. IDA Ireland is actively engaged with the Department of Enterprise, Trade and Employment (DETE) on the White Paper, the full implementation of which will enhance Ireland’s competitiveness in a decarbonised and digitalised global economy.”

“Ireland’s existing base of foreign direct investment is a core national asset that we must continue to nurture and develop. Exports by multinational companies (MNC’s), a key factor to Ireland’s economic 2022 recovery, grew to €315.5bn, approximately 70% of total national exports in 2021. Beyond expenditure in the Irish economy, IDA Ireland clients make a considerable contribution to the public finances. Sectors dominated by IDA Ireland client companies account for an estimated 70% of corporation tax receipts and also make a significant contribution to income tax receipts.

“Progressing with plans to improve the carrying capacity of the economy will be vitally important to enable Ireland to maintain existing levels of investment and to fully realise opportunities in the years ahead. IDA Ireland has frequently highlighted the need to efficiently deliver on key objectives including increasing the supply of new housing, making the planning system clearer and more consistent, and progressing key infrastructure projects under the National Development Plan. The transformative nature of policy, geopolitical and technological developments over the past 12 months also place an added emphasis on the need to fast-track the roll-out of renewable energy, invest in the digital skills of our people, promote RD&I, and ensure we have a competitive green and digital incentive offering.”

Concluding Michael Lohan said, “Investors' commitment to Ireland remains strong. The country’s value proposition as a place in which to do business remains, as evidenced by these results, a compelling one. As we seek to lay the foundations for continued growth and transformation in the FDI base in the years ahead, our success will depend on progress toward enhancing the carrying capacity of the economy in the immediate and medium-term. The key areas requiring attention remain planning, housing, energy, water, and wider infrastructure. Policies that support the continued availability of talent are also critical. Managing costs in the current inflationary environment and executing on planned capital projects will be challenging, but important for Ireland’s continued competitiveness.”   

Speaking today at the launch of IDA Ireland’s 2022 Annual Report, Minister for Enterprise, Trade, and Employment, Simon Coveney said: “We saw a record year last year for foreign direct investment, and today, despite significant challenges in the global economy, we see this level of performance largely maintained in the first six months of this year.”

“These results are also commendable given the ongoing international turmoil caused by Russia’s illegal invasion of Ukraine. While there are some other economic headwinds ahead, including persistently high inflation, Ireland continues to win international investment due to our highly educated and talented workforce and because of our stable pro-business environment.”

“We’ve worked hard to create a welcoming environment for FDI in all parts of the country and the strong spread of jobs and investment in today’s results is in keeping with government policy, with 67 (48%) of the 139 investments outside of Dublin. While Dublin continues to be the engine of our economic growth, our aim is for well-paid, long-term sustainable jobs, to be available in every region in Ireland. That is our objective and I’m glad to see that largely reflected in today’s results.”