Dublin, Ireland – Foreign-owned companies operating in Ireland employed 623,128 people and generated a staggering €921 billion in total turnover in 2022, according to new data from the Central Statistics Office (CSO). Despite comprising only 3.2% of all businesses in the country, these firms accounted for an impressive 71.4% of total turnover and provided jobs for 27% of the workforce.
The data reveals that US-owned enterprises play a crucial role in this landscape, generating 74% of all turnover produced by foreign-owned multinationals in Ireland and contributing 53% of the total turnover within the Irish business economy. This strong presence underscores the significant impact of American investment on the country’s economy.
The report also highlights the pronounced influence of foreign-owned multinationals in the industrial sector, where they accounted for 88% of turnover and nearly half of employment, despite representing just 5% of enterprises within that sector.
On the other hand, Irish firms with operations abroad employed 1.36 million people in 2022, reflecting a 9.5% increase from the previous year. However, their turnover decreased slightly, reaching €259 billion, down 1.6% from 2021. The majority of this turnover occurred in the United States, which represented 36% of the total, while the UK followed with 15% of turnover and 7% of employment.
Devin Zibulsky, a statistician in the CSO’s Business Statistics Division, commented on the broader implications of these figures, stating, “Multinational enterprises play an important role in the economy of many countries worldwide.” He noted that having a presence in multiple countries can provide multinationals with access to diverse consumer markets and workforces while simultaneously boosting economic activity in host nations.
Kate English, an economist at Deloitte, emphasized the importance of foreign direct investment (FDI) to Ireland’s economic growth. “With foreign-owned multinationals accounting for 27% of employment and 71% of turnover, it’s clear that maintaining and attracting new FDI is essential,” she said.
However, English warned that as global competition increases due to changing trade policies and tariffs, Ireland must strategically invest to remain competitive. “While we can’t control the policies of other nations, we must ensure that Ireland continues to be an attractive destination for FDI and enhance efforts to support Domestic Direct Investment,” she added.
The findings reflect the critical role that foreign-owned firms play in the Irish economy, as well as the ongoing challenges and opportunities that lie ahead in maintaining this vital sector.
