Funds industry “key contributor” to Irish economic growth

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Growth in Ireland’s funds industry has been linked to its increased economic impact in the country, as assets across all Irish-domiciled funds reached €3.5 trillion in the first quarter this year, up 5% from the previous quarter.

The country’s asset management sector saw an increase in its contributions across all key economic metrics during the first three months of the year, a report commissioned by Irish Funds found, which said the industry was a “key contributor” to Ireland’s economic growth.

Direct employment rose by 7.9% compared to the previous quarter, while its contribution to the Irish exchequer grew by 9.2%, according to the report. The industry now employs over 17,200 people directly across Ireland (34,357 including indirect employment), and contributes €914 million in direct taxes.

Throughout 2020, the Irish funds industry generated a total direct economic impact of €7.5 billion marking a 6% increase from 2018. Including its indirect economic impact, the figure stood at €12.1 billion.

The increase in domestic economic contribution is linked to increased activity and business volumes, Irish Funds said. Net sales into Irish domiciled funds for Q1 this year were €40.5 billion, following €235 billion of net sales in 2020. 

“The continuing evolution and growth of the industry has confirmed the sector as a key and consistent economic contributor,” Irish Funds stated.  

Pat Lardner, chief executive of the funds industry trade body, said: “By enabling global savings, supporting greater investment into and across the EU, and delivering tangible economic benefits to communities across Ireland, the funds and asset management industry plays a pivotal role in showcasing what Ireland has to offer.”

The report also highlighted the ongoing regionalisation and increased national presence of Ireland’s funds industry over the last two to three years, as firms sought to expand outside of Dublin. Almost half of Ireland’s counties now have at least one industry office.

Source: https://www.funds-europe.com/