Why Ireland
National security considerations now trump economics and profit efficiencies—that is the world we live in. Indeed, it’s hardly an understatement to proclaim that the liberal economic order of the past seventy-five years is being tested. The entire concept of globalisation is under threat as policy makers look inward and champion their own strategic interests. Security first, economics second, which is testing the binds of globalisation. This state of affairs is not expected to recede anytime soon given the geopolitical realities of our times. There is more talk of de-globalisation (or localisation) than globalisation.
That said, the transatlantic economy remains the largest and wealthiest in the world and a source of prosperity and development for its citizens. And within this framework, Irish-US linkages remain solid. In a world of unrelenting change and frequent shocks, one constant is the depth and durability of Irish-US commercial relations. Both parties are deeply embedded in each other’s economy, creating mutual benefits for all stakeholders on both sides of the Atlantic. Even with the aftershocks of this decade, the partnership not only endures but continues to thrive.
Bi-lateral trade and investment remain robust. The ties that bind continue to thicken and deepen—driving economic growth, earnings, jobs, incomes and a host of other benefits. The embrace of artificial intelligence and the digitalisation of the global economy are accelerating, portending even deep integration between Ireland’s tech savvy economy and US technology leaders. In the end, Irish-US bonds are set to become stronger, not weaker, as this decade progresses.
In part this reflects the following:
US multinationals remain among the most globally-minded entities in the world; they go where there are opportunities for growth.
Even minus the United Kingdom, the European Union will remain one of the most attractive markets in the world for US firms. The region’s attractions are often underrated but the EU remains large, wealthy, and richly endowed with human capital, respect for the rule of law, political stability, and other business-friendly policies.
At the heart of US corporate interests in Europe will be Ireland.
Figure 1
US Direct Position in Ireland on a Historical-Cost Basis
Source: Bureau of Economic Analysis. Data as of Jan 5, 2024.
Figure 2
Manufacturing Employment of US Foreign Affiliates** in Ireland
*Author's estimates.
**Majority-owned nonbank affiliates (2005-2008). Majority-owned bank and nonbank affiliates 2009-2021.
Source: Bureau of Economic Analysis. Data as of Jan 5, 2024.
Given multiple attributes that make the nation among the most attractive in the world for foreign direct investment, Ireland is well placed to remain the critical link not only between the United States and Europe but also the United States and the world.
As we reach the mid-point of this decade, Ireland is well positioned to serve as a transatlantic hub linking the world’s largest economies. Over the past few decades, the nation has been transformed into a full-fledged global partner of Corporate America—a critical link in the global success of some of the world’s most dynamic and innovative firms. Irish-US linkages are among the deepest in the world, a depth that will survive our times of tumult and uncertainty. To the latter point, US foreign direct investment stock in Ireland totalled a record $575 billion in 2022, more than triple the combined US investment stock in China ($126 billion) and India ($77 billion).
