Forecasted 30% fall in Foreign Direct Investment a Big Threat to Ireland - Toibín
Aontú Leader & Meath West TD Peadar Tóibín has expressed concerns for Ireland’s Level of Foreign Direct Investment in the near future, and has called on the government to recognise and address the issue.
An Teachta Tóibín:
“One of Ireland’s core sources of revenue and economic planks is the high level of Foreign Direct Investment flowing into the country. FDI represents hundreds of thousands of jobs, billions in tax revenues and investment, and platforms for derivative businesses. Foreign Direct Investment is good but Ireland’s economy is very highly dependent on FDI for economic activity”.
“That is why I am particularly concerned over a potential drop in FDI down the line and the effect this would have on our economy. Covid will have a significant impact on FDI over the next few years. Some have estimated that FDI will fall by 30% over the next few years as people are simply not able to travel internationally. If the Covid crisis continues even in a reduced form over the next few years many businesses will start to plan supply chains to reduce international dependency”.
“The IDA have shown resilience in 2020 with an increase in jobs. However much of this has happened due to Pharma, MedTech and Technology performing quite well due to the crisis. But site visits are not happening this year or last year. Teleconferencing has been happening but its not as rich a communication. The FDI development pipeline for the next few years is being significantly disrupted”.
“Jobs losses and disruption of FDI projects have the capacity to affect our FDI in years to come, and if we continue our high dependency on FDI it could really hurt our economy. Ireland is the eight most attractive country in Europe for FDI, and a 20-30% fall in FDI would be more keenly felt here than elsewhere. Post crash, FDI was a vital part of our economic recovery, if our FDI levels fell by 20-30%, this could seriously hamper our economic recovery from the next recession. That is why I am calling on the Irish to recognise this threat and intervene to significantly grow out indigenous export sector. Failure to do so now, will compromise our economic recovery from Covid-19 and our economic prosperity in the future.”
