Covid-19 crisis to cause FDI investment to the Republic to fall by 20% this year

Some 20 per cent of foreign direct investment (FDI) projects in the Republic won’t proceed as planned this year because of the Covid-19 crisis, according to EY.

Publishing a new report, the consulting firm said that while the State won’t get as many investments as originally intended, it would still likely fare better than many other European nations.

EY said it expected 80 per cent of FDI-planned projects to be realised this year, as against a European average of 65 per cent.

The news comes as the State climbed two places to eighth position out of 47 countries in a ranking of most attractive European locations for FDI.

It also comes as the State retains first place for the greatest number of FDI projects per million population.

Following an exceptionally strong performance in 2018 when 205 projects were realised in the Republic, investments fell by 7 per cent last year.

“While a reduction in the total number of projects may attract attention, it’s important to note that Ireland’s strategy has been to focus on the value and quality of the FDI it attracts rather than the volume. The new projects secured reflect an extension of the investor and project base, with 61 per cent representing new projects, rather than solely building on past successes,” said Feargal De Freine, partner and head of FDI at EY Ireland.

Source link

Leave a Reply

%d bloggers like this: