Direct investment from overseas rose sharply to €14 billion in the second quarter, according to the latest balance of payments figures.
The Central Statistics Office figures, published yesterday, showed that direct investment rose from €4.3 billion in the first quarter to €14.1 billion in the second quarter, with the total for the first half of the year running 75 per cent ahead of the same period last year.
The details on direct investment appear in the financial account transactions of the balance-of-payments data. It is not clear whether the big jump in the quarter is due to a general upturn or to a couple of specific large investments. The total also includes inward equity investment, which totalled €5 billion in the second quarter, probably relating in part to venture capital investment in companies being taken private from the stock market.
Overall, the figures show that the current account balance of payments was in deficit to the tune of €389 million in the second quarter, compared to a deficit of €1,039 million in the first quarter. For the first half of the year, however, the current account deficit of €1,428 million was well up on the €426 million in the same period last year.
During the first six months there was a surplus of €15,744 million on merchandise trade, reflecting the excess of exports of goods over imports. This compared to a merchandise surplus of €18,686 million in the same period last year.
The balance of invisible items fell from a deficit of €19,113 million in the first half of last year to a deficit of €17,172 million in the same period this year. This was made up of a deficit on services, trade and investment flows, including items such as multinational profit repatriations.
The figures also showed €43 billion in portfolio investment asset transactions, substantially higher than for previous quarters and, according to the CSO, " probably indicating a returning confidence in the international financial markets".
Portfolio liabilities of €32.3 billion, meanwhile, "also reflected this upward trend and probably indicate a returning confidence in the international financial markets," according to the CSO.
