NIB: FDI could grow up to 60%
Foreign Direct Investment (FDI) into Ireland could grow by as much as 60%, according to a report commissioned yesterday.
National Irish Banks’ quarterly report has indicated that this year would be a particularly strong year for FDI. This comes off the back of further data from the UN Conference on Trade and Development which has stated that €2.5 billion euro has been generated in Greenfield FDI for the first four months of the year.
This is over 50% already of the total investment in 2010 and if trends continue, FDI could reach a 60% growth level for 2011.
National Irish Bank’s chief economist, Dr. Ronnie O’ Toole, has welcomed the report and called it a “clear positive”. However, he has also warned that our exports could take a hit due to the global slump. Original growth predictions of 7% have had to be modified downwards to 5.5%
“The global financial markets have been hit by a nasty cocktail of worsening macro-data and rising discontent among policymakers, which is affecting the outlook for Ireland’s key markets in the US and Europe.”
“A low-growth scenario for the coming two to three years seems increasingly likely in these markets,” Dr O’Toole said.
Ireland depends on the euro-zone for almost half its exports, while the UK is Ireland’s largest market. Sluggish growth in these markets could have bad implications for Irish exports, although high inflation would allow Ireland to up its prices in the case of the UK market.