Ireland remains an attractive location for foreign direct investment and the flow of projects in the first half of the year was strong. IDA Ireland reported in its mid-year review this week that it had won 139 projects during the first six months of 2023 which could, in time, deliver 12,000 new jobs. Just under half were for locations outside Dublin and 52 projects were from companies investing in Ireland for the first time.
The results were behind the same period last year, when 155 investments were announced, involving a potential for 18,000 jobs. Nonetheless, at a challenging time for the global economy, it was an encouraging result, continuing a strong performance since 2015.
The IDA says it is encouraged by the scale and complexity of many of the new projects. While official data has shown some fall-off in exports in recent months, notably in the pharma sector, the continuation of strong investment levels provides some comfort for the future. If companies are continuing to build investments here, then the likelihood is that over time export trends will remain strong, even if in the short term the international slowdown may have an impact.
The IDA takes an upbeat view of prospects for the years ahead, pointing out that investor commitment to Ireland remains strong. However, there are also cautionary words. Chief executive Michael Lohan warns that progress will depend on building what he calls the “carrying capacity” of the economy. This brings us back to the familiar ground of Ireland’s challenges in housing, planning, energy, water and wider infrastructure, where the growth of the population and the economy has outstripped the resources in place.
The Government has ambitious investment plans, but there is much to do and progress has often been too slow. Long-term investment and planning fit uncomfortably into Ireland’s short-term political cycle. But with social and economic needs converging and cash to hand due to the surge in tax revenues, the ability to deliver is the core task facing both politicians and the public service.