Multinational investment in Ireland drops by 60 per cent
Investment by foreign multinational companies in Ireland dropped by as much as 60 per cent in 2001.
A report published by the United Nations Conference on Trade and Development (UNCTAD) indicates a drop of investment by foreign multi-nationals in Ireland from $24 billion to $10 billion - the equivalent of $8,000 per Irish worker.
In contrast to the drop in the inward flow of investment, outward Foreign Direct Investment (FDI) flows from Ireland increased significantly in 2001 which reflects the emergence of a growing cohort of Irish-based multinational companies.
The report, entitled The World Investment Report 2002, found that FDI flows declined worldwide for the first time in ten years.
The report blamed a worldwide slowdown in economic growth on the drop. Although the fall was concentrated in developed countries, developing countries also saw their FDI inflows reduced.
Established in 1964, UNCTAD is a UN body focusing on the links between trade, investment and development. The UNCTAD World Investment Report is published each year to examine global trends in FDI inflows, with particular regard to the performance of developing countries.