Recent data illuminated the reason why the forthcoming US presidential election holds major importance for Ireland. The result will strongly affect Ireland’s corporate sector. Statistics from the Central Statistics Office revealed that in 2022, even though merely 3% of Irish companies were foreign multinational-owned, they were accountable for 71% of turnover in the Irish business economy, generating jobs for over 623,000 individuals – this amounts to 27% of employment. Remarkably, almost three-quarters of this turnover can be attributed to US multinationals.
The exchequer’s additional figures indicated that these entities contribute significantly to the nation’s income tax take due to their higher average wages, this is before considering their sizable role in the increasing corporation tax take. Thus, it wasn’t shocking when economist Kate English of Deloitte urged Ireland to ensure its status as a lucrative and competitive location for foreign direct investment is maintained.
She noted that while we can’t dictate other nations’ strategies, Ireland should focus on “the right strategic investments” in a world marked by changing trade policies, and the growing threat of tariffs emphasizing the rise in global competition.
In related news, US Ambassador Claire Cronin hosted a meeting this week at the embassy’s Phoenix Park residence, celebrating a century of diplomatic ties between the US and Ireland. The event was attended by several dignitaries, including Taoiseach Simon Harris.
Harris stressed that in order to keep attracting and retaining investors, Ireland must promptly address infrastructural shortcomings in energy, water, transport, and housing. He cited the state housing deficit as his most significant concern, seemingly dismissing the fact that his political party has been at the helm of successive governments over the last 13 years.
He suggested that the deficits deterring inward investment “emerged due to an extraordinary decade of economic and population growth”; this seems to disregard the government’s active decisions regarding planning reform and infrastructure investment.
Regardless of the result of the forthcoming US elections on November 5, Harris emphasised that Ireland should concentrate on fundamental reform and investment, rather than short-term solutions, to capitalise on potential opportunities.