A modest rise in investment outflows, mainly related to multinational profit repatriations, contributed to a small €184 million deficit on the balance of payments current account last year.
Total multinational profit outflows during the year were €31.1 billion, up from €25.1 billion the previous year.
This indicates strong profitability in some multinational companies, many of which may seek to maximise the profit earned here to avail of the 12.5 per cent corporation tax rate.
The figures showed a 6 per cent rise in total exports to €119.1 billion, with a 2 per cent rise in merchandise exports. Services exports increased by more than 20 per cent, including a strong performance from the software sector.
The overall current account deficit included a merchandise surplus of €38.3 billion and a deficit on invisible items of €38.5 billion.
The multinational profit outflows count against the invisibles balance. They are also the main reason for the difference between gross domestic product (GDP) and gross national product (GNP) growth.
In a comment on the figures, Davy stockbrokers' economists said they did not materially change their expectation that GNP grew by 1 per cent last year.
