Irish stocks of direct investment abroad decreased to €988 billion at the end of 2020 from a stock position of €1.002 trillion at the end of 2019, according to new CSO figures.

The stock of direct investment abroad at the end of 2020 comprised of equity capital and reinvested earnings of €1.039 trillion, and the withdrawal of other capital of minus €52 billion.

A decrease in ‘other capital’ positions (minus €46 billion) was offset by an increase in ‘equity capital and reinvested earnings’ (€32 billion).

The decrease in ‘other capital’ positions was mostly attributable to the withdrawal of investment from Switzerland and Central American offshore centres of €19 billion and €25 billion respectively.

Equity-capital increase

The increase in equity capital and reinvested earnings’ positions was attributed to increased investment in North America, €97 billion of which was offset by a decrease in European investment of €77 billion.

The stock of direct investment in Ireland increased between the end of 2019 and end of 2020 – from €1.080 trillion to €1.098 trillion, the figures show.

Increased investment from the United States of €54 billion was offset by a decrease in investment from Europe and offshore centres of €13 billion and €27 billion, respectively.

Net foreign liability

Ireland had a net foreign liability of €110 billion at the end of 2020, an increase of €32 billion on the net foreign liability of €78 billion at the end 2019.

The CSO differentiates the value of investment stock in Ireland by location of the immediate owner (of the direct-investment enterprise) as against the location of the ultimate investor.

In 2020, the stock of investment from the US as ultimate investor at €836 billion was €596 billion greater than the stock of US investment presented by the immediate owner (€240 billion).

Significant US investment

The CSO has said that this difference indicates that, while a great deal of investment into Ireland comes directly from European counterparts, this investment originates from enterprises located in the United States.

Investment stock from Ireland as ultimate investor at €52 billion primarily represents former US-based corporate inversion enterprises that are now located in Ireland.

Investment flows

Flows of direct investment into Ireland increased by €71 billion in 2020 – equity and reinvested earnings inflows of €57 billion and €64 billion, respectively, were offset by decreases in other capital investment of €50 billion.

The increase in flows of FDI into Ireland was largely attributable to investment from North America and Bermuda, which increased by €46 billion and €18 billion in 2020 respectively.