For the first time in three years, foreign direct investment into the Republic has exceeded the level of profits repatriated out of the State.

According to a new report from the Organisation for Economic Co-operation and Development (OECD), the State staged a dramatic recovery last year, with investment inflows from OECD countries hitting $12.8 billion (€9.6 billion). This is the first time since 2003 that the State has recorded positive levels of inward investment.

In 2004, and to a greater extent in 2005, investment inflows dropped into negative territory as US multinationals repatriated profits out of Ireland. This was driven by a once-off amnesty in the US, which allowed firms to return profits earned overseas at a favourable rate of 5.25 per cent.