Thursday, October 03 11:46:42
The last five years saw a massive surge in US investment in Ireland with the US sinking more capital in Ireland between 2008 and 2012 than in the previous 58 years.
That's according to a report commissioned by the American Chamber of Commerce Ireland, which also said that this level of investment was roughly 14 times larger than US investment in China over the same period.
The report, entitled "The Irish US Economic Relationship 2013", was compiled on behalf of the American Chamber of Commerce Ireland by leading Wall Street economist and strategist, Joseph P Quinlan. Mr. Quinlan regularly advises policy makers and legislators on Capitol Hill on global trade and economic issues. He has also testified before the European Parliament and has served as a consultant to the US Department of State.
The report also reveals the two-way nature of the relationship. Irish firms now have a sizeable presence in the United States which is valued at roughly $25 billion in 2012 on a historic cost basis. This is a larger position in the US than Italy's, South Korea's and five times that of China.
"Ireland has become hugely important for the success of corporate America over the past five years", said Peter Keegan, President of the American Chamber of Commerce Ireland. "There has been $129.5 billion investment in Ireland by US firms over the past five years and the stock of US investment in Ireland is now more than $200 billion for the first time. Corporate America's FDI stock in Ireland is now equal to the combined stock in France and Germany and it's nearly 20pc larger than the aggregate US stock in the four BRIC nations of Brazil, Russia, India and China".
Speaking about the report's findings in relation to Ireland's importance to US firms Mr Joseph Quinlan said Ireland now ranks the number one export platform in the world for US affiliates.
"This underscores the importance of Ireland in the global value chains of US firms. Corporate America's presence in Ireland is also tangible, visible, palpable, material, physical and concrete making Ireland a hugely important strategic cog in the global operations of many of the world's top corporations."
"This report is both revealing and encouraging. It reveals that US firms are now deeply embedded in the Irish economy, and account for over one quarter of the nation's gross domestic product with annual output reaching $62.5 billion in 2010. It is also encouraging in terms of the continued growth in the level of investment by US firms here. Ireland ranked as the fourth largest recipient of US FDI in 2012 when we garnered almost as much as all of developing Asia combined. Furthermore, while US investment to Ireland actually rose by 1pc to $22.8 billion last year investment to the EU declined sharply by some 17.5pc in the same year," said Mr Quinlan.