Ireland has a “positive pipeline” of foreign investment lined up for the first half of next year, but the outlook for the rest of 2023 is “more uncertain” due to global economic headwinds, according to Ireland’s inward investment agency.
(Bloomberg) — Ireland has a “positive pipeline” of foreign investment lined up for the first half of next year, but the outlook for the rest of 2023 is “more uncertain” due to global economic headwinds, according to Ireland’s inward investment agency.
A record 301,475 people were employed by multinationals in Ireland in 2022, equating to 12% of the total labor force, the IDA’s interim CEO Mary Buckley said on Monday.
Of the 242 investments won in the year, 103 were from new names.
Even so, “the now evident severe headwinds facing the global economy in 2023 means we will have to work harder than ever in the year ahead to win new investment,” she said.
The results come after a wave of job cuts at multinational technology companies with European headquarters in Ireland including Twitter Inc., Meta Platforms Inc.
and Stripe Inc.
While the job losses are “regrettable,” the companies involved will continue to operate in Ireland, the agency said.
“Not withstanding the recent retrenchment in the tech sector, we all know the future is digital,” Deputy Prime Minister Leo Varadkar said at a briefing.
“There will be a huge expansion in the tech sector in the medium term, we must ensure that all businesses in Ireland no matter what their size are at the forefront of that expansion.”
Tech sector jobs grew 9% in 2022, though this figure doesn’t account for roles lost since October, which will be included in the agency’s 2023 results, Buckley said.
“There will be some job losses ahead, but we are very confident of the strong base and the growth that continues year-on-year in the technology sector,” she said.
Even so, “our companies are going to be much more cautious next year. Growth is likely to slow in Ireland from all of the headwinds we’re seeing.”
Ireland last week published a new business strategy in the wake of tech sector job cuts, focusing on growing domestic exporters as well as emphasizing decarbonization and digitalization.
Investment in infrastructure, particularly housing, which is being raised as a concern by businesses, will also be a “major priority,” Varadkar said.
While more people are expected to work in multinationals, growth won’t be as strong as in recent years, he said.
Where there are “big job expansions to come it’ll be more from life sciences and manufacturing rather than technology.”
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