Multinational investments in Ireland dropped in the first half of 2023, reducing the number of associated new jobs by a third compared with a year ago, amid a tougher economic environment and stiffer international competition.
(Bloomberg) — Multinational investments in Ireland dropped in the first half of 2023, reducing the number of associated new jobs by a third compared with a year ago, amid a tougher economic environment and stiffer international competition.
Ireland won 139 investments in the first half of 2023 which could create up to 12,000 jobs in time, according to the state’s inward investment agency. That compared to 155 investments and up to 18,000 jobs in the equivalent period last year, the most successful six months in IDA Ireland’s history.
Part of the challenge has been “fierce” competition from other countries, IDA CEO Michael Lohan said on Wednesday. Other nations are “aggressively pursuing investments” while policies such as the US Inflation Reduction Act and the EU Chips Act are also having an impact, he told reporters in Dublin.
Still, foreign direct investment flows into Europe this year have been flat amid a more fragile global economy, so the performance is relatively “healthy,” the IDA said.
“You can only assess how well Ireland is doing as a place that’s competing for investments when you compare to global trends this year, which are very different to last year,” Enterprise Minister Simon Coveney said at the briefing. The period ahead will be characterized by a “accelerated pace of change” and “exceptionally challenging economic backdrop.”
While global job cuts in the technology sector have impacted Ireland, where many multinationals have European or EMEA headquarters, there are opportunities for workers with tech skills in other sectors and there’s likely to be a “strong net positive” number of roles created by IDA client companies in 2023 overall, he added.
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