Insights on IDA Ireland’s New Five-Year Strategy: Aiming for Sustainable Growth Amid Uncertainty
IDA Ireland's recently launched five-year strategy, "Adapt Intelligently: A Strategy for Sustainable Growth and Innovation", presents an ambitious goal of creating 75,000 new jobs through new investment projects.
The new strategy will:
Focus on winning, strengthening and maintaining long term investment with existing and new client base
Secure 1,000 new investments that will deliver €250bn to the Irish economy and further embed FDI clients in Ireland
Scale RD&I investment to €7bn to position Ireland at the centre of cutting-edge global technological innovation in the next 5 years
Enable upskilling of 40,000 people within IDA Ireland client base
Support the creation of 75,000 new jobs across priority sectors of growth and opportunity
Enhance balanced regional development through securing 550 investments into regional locations
Support 35% reduction of carbon emissions by IDA Ireland clients and attract new green and digitally enabled investment
The strategy comes at a time when global uncertainty is high, including the slowdowns in investment that preceded the Trump administration. For Ireland, the challenge is compounded by infrastructural limitations, which the government is actively addressing through large-scale initiatives in energy, water, transport, and especially rail infrastructure.
While the specific targets for job creation are not broken down annually, it’s worth noting the overall progress. A decade ago, the foreign direct investment (FDI) sector employed about 200,000 people in Ireland. That number has now grown to 300,000, a testament to the long-term success of IDA’s strategy. The fact that job losses in the FDI sector have been minimal further demonstrates the stability this sector provides.
Aidan Scollard, a partner in Baker Tilly, reflects on the positive trajectory, emphasising the importance of the 75,000 job target, especially in the face of unpredictable global conditions. Aidan also notes that Ireland’s government has been working diligently to overcome infrastructural challenges, which should position the country well for future growth. The success of IDA Ireland in maintaining a healthy FDI sector has been a key driver of government surpluses, fuelled by both employment taxes and corporate revenue.
Total job numbers in the foreign direct investment (FDI) sector have jumped from 200,000 a decade ago to 300,000 now being a large contributor to government surpluses from employment and Corporate taxes. The IDA has had a hugely positive impact and job losses have generally been very limited in IDA sourced FDI companies.
In conclusion, while there are risks, particularly in the form of trade tensions and infrastructural gaps, Ireland's proactive strategy in growing its FDI sector offers a promising future. If Ireland can weather the global uncertainties, including potential tariff impacts, the next five years could prove to be another chapter of impressive economic growth and new job creation.
