The level of direct foreign investment into Ireland dropped signficantly last year.
According to figures issued by the Central Statistics Office today, direct investment flows fell from €20,185m in 2003 to €8,987m in 2004.
The figures show that for European investment, there was lower funding from the Netherlands and France as well as disinvestment by UK residents of €2,373m. There was also significant disinvestment from mostly offshore Caribbean investors large due to the impact of sizeable dividend repatriations by their Irish-based enterprises.
However, although US investors withdrew €1,178m in equity funding, the combination of reinvestment of earns and other capital inflows resulted in overall US direct investment of €3,996m.
Inward direct investment of end-year stock levels dropped from €176, 532m in 2003 to €171,766m. This reduction essentially results from currency exchange rate movements and financial markets prices changes during the year.
Outward direct investment flows increased from €4,971m in 2003 to €12,278m in 2004, mostly to the Netherlands and the UK.