Source: Better news on FDI front
Time was when reports from the Economic and Social Research Institute (ESRI) were ignored or even ridiculed in the corridors of power – their bearded former chief economist, John Fitzgerald, was famously described by a former finance minister as a creeping Jesus. Now decision-makers hang upon their every word because of their unique capacity to model the impact of Brexit on the Irish economy. Their latest economic outlook looks at the likely impact on foreign direct investment (FDI) of a British withdrawal from the single market. The UK has the second largest stock of FDI in the world and the largest stock within the EU, accounting for 5.8 per cent of world FDI stocks and 18.7 per cent of EU FDI. International economic modelling based on OECD statistics suggests that in a redistribution of FDI across remaining EU members, Ireland would gain investments worth €22.4 billion over a period of years, adding 3% to GDP, 2.8% to exports and 1.8% to employment. This estimate is based on the known behaviour of multinational companies, not on the supposed poaching skills of Enterprise Ireland.