Inflows | Outflows | |
Q4 2020 | 7.517 | 24.079 |
Q1 2021 | 9.856 | 37.438 |
Q2 2021 | 10.435 | 36.917 |
Q3 2021 | 4.147 | 30.142 |
Q4 2021 | 12.001 | 32.684 |
Q1 2022 | 9.382 | 43.715 |
Q2 2022 | 12.516 | 44.069 |
Q3 2022 | 4.406 | 43.059 |
Q4 2022 | 14.768 | 43.81 |
Q1 2023 | 11.038 | 48.869 |
Direct investment income outflows (earned on investments in Ireland by investors located abroad) were €48.9bn in the first quarter of 2023, an increase of €5.1bn compared with the fourth quarter of 2022. Direct investment income inflows, which represent income earned abroad by investors located in Ireland, were €11bn in the first quarter of 2023, a decrease of €3.7bn from the previous quarter.
Income on Debt Outflows | Reinvested Earning Outflows | Dividends & Distributed Branch Profits Outflows | |
Q4 2020 | 2.492 | 16.24 | 5.347 |
Q1 2021 | 2.551 | -1.089 | 35.976 |
Q2 2021 | 2.298 | 26.097 | 8.521 |
Q3 2021 | 2.335 | 14.04 | 13.767 |
Q4 2021 | 2.075 | 13.654 | 16.955 |
Q1 2022 | 2.508 | 12.71 | 28.497 |
Q2 2022 | 2.576 | 35.934 | 5.559 |
Q3 2022 | 3.035 | 22.216 | 17.809 |
Q4 2022 | 3.688 | 8.645 | 31.477 |
Q1 2023 | 3.528 | -8.906 | 54.247 |
The composition of direct investment income outflows is presented in Figure 5.2. Income outflows on reinvested earnings were -€8.9bn in the first quarter of 2023, a decrease of €17.6bn compared with the fourth quarter of 2022. Dividends & distributed branch profits outflows at €54.2bn were up €22.8bn on the previous quarter while income on debt outflows at €3.5bn were down €160m.
Direct Investment Income Outflows | of which Manufacturing | of which Information and Communications | |
Q4 2020 | 24.079 | 14.829 | 5.9 |
Q1 2021 | 37.438 | 26.225 | 7.809 |
Q2 2021 | 36.917 | 21.403 | 9.987 |
Q3 2021 | 30.142 | 20.218 | 4.896 |
Q4 2021 | 32.684 | 20.537 | 7.718 |
Q1 2022 | 43.715 | 32.195 | 6.942 |
Q2 2022 | 44.069 | 27.195 | 11.302 |
Q3 2022 | 43.059 | 31.478 | 6.717 |
Q4 2022 | 43.81 | 26.909 | 11.098 |
Q1 2023 | 48.869 | 33.201 | 10.082 |
Figure 5.3 illustrates a breakdown of direct investment income outflows between two sectors, manufacturing and information and communications. Of the €48.9bn in direct investment income outflows in the first quarter of 2023, €33.2bn can be attributed to the manufacturing sector and €10.1bn to the information and communications sector. Manufacturing sector income outflows increased by €6.3bn while information and communications sector income outflows decreased by €1bn when compared to the previous quarter.
Abroad | In Ireland | |
Q4 2020 | 19.674 | 14.319 |
Q1 2021 | -0.419 | -18.21 |
Q2 2021 | 13.624 | 6.355 |
Q3 2021 | -2.291 | -8.541 |
Q4 2021 | 36.557 | 17.071 |
Q1 2022 | 8.148 | -7.249 |
Q2 2022 | -4.516 | -28.786 |
Q3 2022 | -14.735 | 7.526 |
Q4 2022 | 20.025 | 4.713 |
Q1 2023 | 10.567 | 2.02 |
Foreign direct investment (FDI) transactions abroad and in Ireland are shown in Figure 5.4. Direct investment into Ireland increased by €2bn in the first quarter of 2023. Direct investment abroad increased by €10.6bn in the quarter.
Please note that today 12/10/2023 an amendment has been made to the text under Figure 5.4.
Original text: Direct investment into Ireland decreased by €2bn in the first quarter of 2023. Amendment: Direct investment into Ireland increased by €2bn in the first quarter of 2023.
Abroad | In Ireland | |
Q4 2020 | 1030.206 | 1152.175 |
Q1 2021 | 1111.506 | 1214.33 |
Q2 2021 | 1152.109 | 1222.012 |
Q3 2021 | 1208.093 | 1234.366 |
Q4 2021 | 1315.213 | 1257.422 |
Q1 2022 | 1206.952 | 1237.281 |
Q2 2022 | 1137.975 | 1298.829 |
Q3 2022 | 1136.168 | 1375.358 |
Q4 2022 | 1125.181 | 1283.664 |
Q1 2023 | 1156.581 | 1259.948 |
The stock of FDI assets held abroad increased from €1,125.2bn in Q4 2022 to €1,156.6bn in Q1 2023, while the stock of FDI assets held in Ireland decreased from €1,283.7bn in Q4 2022 to €1,259.9bn in Q1 2023. FDI assets held in Ireland by foreign investors decreased by €23.7bn. FDI assets held abroad by Irish investors increased by €31.4bn.
Net Direct Investment Income | All Other Current Account Components | Current Account Balance | |
Q4 2020 | -16.562 | 14.756 | -1.806 |
Q1 2021 | -27.582 | 44.544 | 16.962 |
Q2 2021 | -26.482 | 42.938 | 16.456 |
Q3 2021 | -25.995 | 48.298 | 22.303 |
Q4 2021 | -20.683 | 24.494 | 3.811 |
Q1 2022 | -34.333 | 50.375 | 16.042 |
Q2 2022 | -31.553 | 45.358 | 13.805 |
Q3 2022 | -38.653 | 48.251 | 9.598 |
Q4 2022 | -29.042 | 44.186 | 15.144 |
Q1 2023 | -37.831 | 51.402 | 13.572 |
The impact of foreign direct investment income on the current account balance is shown in Figure 5.6. In Q1 2023 net direct investment income (FDI income inflows less FDI income outflows) was -€37.8bn while the net of all other current account components (trade in merchandise, services and other income) stood at €51.4bn. The resultant balance was a current account surplus of €13.6bn.
Net Direct Investment Transactions | All Other Financial Account Components | Financial Account Balance | |
Q4 2020 | 5.355 | 4.81 | 10.167 |
Q1 2021 | 17.791 | -6.64 | 11.152 |
Q2 2021 | 7.269 | 17.805 | 25.074 |
Q3 2021 | 6.25 | 7.446 | 13.696 |
Q4 2021 | 19.486 | -12.252 | 7.233 |
Q1 2022 | 15.397 | 1.974 | 17.37 |
Q2 2022 | 24.27 | -12.591 | 11.677 |
Q3 2022 | -22.261 | 30.923 | 8.66 |
Q4 2022 | 15.312 | -1.665 | 13.647 |
Q1 2023 | 8.547 | 1.211 | 9.759 |
The impact of direct investment transactions on the financial account balance is shown in Figure 5.7. In Q1 2023 there were net flows of €8.5bn in foreign direct investment transactions while the net contribution from other financial account components (portfolio investment, other investment and reserve assets) was €1.2bn. This contributed to a financial account surplus of €9.8bn.
Net Direct Investment Position | All Other Net IIP Components | Net IIP | |
Q4 2020 | -121.969 | -497.083 | -619.052 |
Q1 2021 | -102.824 | -522.877 | -625.701 |
Q2 2021 | -69.903 | -510.404 | -580.307 |
Q3 2021 | -26.273 | -559.042 | -585.315 |
Q4 2021 | 57.791 | -626.001 | -568.21 |
Q1 2022 | -30.329 | -504.693 | -535.022 |
Q2 2022 | -160.854 | -426.986 | -587.84 |
Q3 2022 | -239.19 | -400.697 | -639.887 |
Q4 2022 | -158.483 | -432.674 | -591.157 |
Q1 2023 | -103.367 | -454.485 | -557.852 |
The net stock of foreign direct investment assets in the net international investment position (IIP) is shown in Figure 5.8. In Q1 2023 there was a net direct investment position of -€103.4bn. Other net IIP components (portfolio investment, other investment and reserve assets) accounted for -€454.5bn. The overall net IIP balance is -€557.9bn.
Direct Investment Position Abroad (left axis) | Direct Investment Position In Ireland (left axis) | Return on FDI Abroad (right axis) | Return on FDI in Ireland (right axis) | |
Q4 2020 | 1030.206 | 1152.175 | 2.02707031409252 | 8.93119534792892 |
Q1 2021 | 1111.506 | 1214.33 | 2.2639553902543 | 9.44174977147892 |
Q2 2021 | 1152.109 | 1222.012 | 2.86787100873268 | 10.6035783609326 |
Q3 2021 | 1208.093 | 1234.366 | 2.64507782099557 | 10.4163594914312 |
Q4 2021 | 1315.213 | 1257.422 | 2.7705778455657 | 10.9097025501383 |
Q1 2022 | 1206.952 | 1237.281 | 2.97982024140148 | 11.5946175525204 |
Q2 2022 | 1137.975 | 1298.829 | 3.34330719040401 | 11.5958297820575 |
Q3 2022 | 1136.168 | 1375.358 | 3.37142042374015 | 11.8897770616814 |
Q4 2022 | 1125.181 | 1283.664 | 3.65025715862603 | 13.6058189682035 |
Q1 2023 | 1156.581 | 1259.948 | 3.69433701573863 | 14.270985786715 |
The rate of return on FDI investment in Ireland and abroad alongside the stock of FDI assets held in Ireland and abroad is presented in Figure 5.9. The rate of return is calculated by FDI income divided by FDI positions. The return on investments in Ireland is significantly higher than the return on investments made abroad. In Q1 2023 the annual rate of return on FDI investment in Ireland was 14.3% compared to 3.7% on FDI investment abroad.
Learn about our data and confidentiality safeguards, and the steps we take to produce statistics that can be trusted by all.