Through its direct and indirect impacts, Ireland’s FDI base is a core national asset. The contribution of our client
companies is tangible, substantive and something that we do not take for granted. The 1,691 operations IDA partners with are individually diverse and spread across sectors at the forefront of the modern global economy. Collectively, they make a sizeable contribution to our economy and society through job creation, opportunity and progression, innovation, local sourcing, global value chain integration and taxation.
The Department’s latest Annual Business Survey of Economic Impact (ABSEI) provided new insights into the extent to which FDI supported the Irish economy at an immensely challenging time in 2020. IDA clients spend in the economy increased by 9% in 2020 to €27.9 billion across payroll (€16.8bn), Irish services and Irish materials (€11.1bn).
In addition, capital expenditure (€7.5bn) and in-house R&D (€2.8bn) by IDA clients both increased in 2020. Exports, which underpinned Irish GDP growth in 2020 despite the adverse effects of the pandemic, increased by 9% to €291.4bn with IDA clients accounting for an estimated 72% of national exports.
The resiliency of Ireland’s FDI base supported the public finances as IDA client companies continued to be a vital source of Exchequer revenue through their tax contribution. Sectors dominated by export facing MNCs accounted for approximately 70% of corporation tax in 2020.
This excerpt was taken from the Chairman & CEO Overview in IDA Ireland's Annual Report and Accounts 2021, which can be viewed in full here.