Ireland raises capital investment by 60% in five years – three times the global average
Ireland is powering ahead of the global average in terms of capital investment in its economy’s business resources and public infrastructure, strengthening its future growth prospects, reveals a new study by UHY, the international accounting and consultancy network.
The study found, Ireland has seen capital investment increase by 60% over the last five years* to USD 61.4 billion in 2015 (latest figures available). This equates to 21.7% of its GDP in 2015.
UHY says higher capital investment levels are an indicator that businesses are positioning themselves to expand capacity, to improve productivity, or to move into new markets by opening new sites. They also reflect governments’ support for growth by improving the transport links, more efficient power generation capacity and other vital infrastructure that businesses rely on.
The UHY study looked at “gross capital formation” – or capital investment – in 41 major economies around the world, measuring trends over a five-year period, and comparing investment levels to their Gross Domestic Product (GDP).
Gross capital formation measures spending on assets such as IT systems, new equipment and machinery, and investments in infrastructure projects by governments. The UHY study compares it to GDP in order to put it into context against the size of a country’s economy.
The G7 is also seeing a slower rate of increase than the world average, raising capital investment by an average of 11.1% over a five-year period. However, the average amount invested by G7 economies is still substantial – at 20.7% of GDP.
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