Michael Lohan: Ireland and the United States – Navigating Uncertainty Through Enduring Economic Partnership
Why Transatlantic Ties Are More Vital Than Ever Amidst Global Turbulence
By Michael Lohan, CEO, IDA Ireland
This piece originally featured in the Ireland INC US 250 Index 2025, available to read here.
In a world dominated by mounting economic pressures, geopolitical uncertainties, and rapid technological change, countries must look to their long standing partners for both support and opportunity. Today, the global economy is facing a number of challenges: persistent inflation, supply chain disruptions, rising geopolitical tensions, and the reverberations of war and climate crises. For Ireland, a small but globally connected nation, these headwinds demand agility and a reaffirmation of the alliances that have underpinned our remarkable economic journey. Chief among these alliances is our enduring relationship with the United States—a relationship steeped not only in economic benefit but also in deep cultural kinship.
Ireland’s bond with the United States is more than a mere diplomatic formality; it is a relationship built on shared values, mutual respect, and generations of migration, innovation, and cultural exchange. From the millions of Irish who sought new beginnings on American shores to the modern flow of ideas and investment, the transatlantic bridge has been a source of both prosperity and resilience.
This deep-rooted connection has translated into one of the most robust economic partnerships in the world. Ireland has long served as a European gateway for American companies, while the US market offers Irish firms unrivalled opportunities for growth and expansion. The latest data from the US Bureau of Economic Analysis confirms that Ireland is the sixth largest source of foreign direct investment in the US, with more than 200,000 people employed by 770 Irish companies across all 50 States.
The significance of the US to Ireland’s economy cannot be overstated. Today, the United States stands as the largest single source of foreign direct investment (FDI) into Ireland. American multinationals have established an enduring presence across the island, creating tens of thousands of high-quality jobs, spurring innovation, and fostering entire sectors—from pharmaceuticals and technology to finance and manufacturing.
These investments are not just numbers on a balance sheet; they represent real livelihoods, vibrant communities, and a dynamic ecosystem that has helped transform Ireland into a global hub for talent and enterprise. In an era when global FDI flows are increasingly volatile, the continued quantum and scale of US investment provide Ireland with invaluable stability and confidence while having significant economic impact.
Recognising the shifting global landscape, IDA Ireland recently unveiled its new five year strategy, ‘Adapt Intelligently’. This forward-looking blueprint is designed to enhance Ireland’s competitiveness, attract the next generation of investment, and ensure that our economy remains resilient in the face of disruption. The strategy emphasises agility, sustainability, and the nurturing of talent—qualities that have long made Ireland attractive to US investors. It calls out four strategic growth drivers for FDI that will create a range of intersecting and connected opportunities across IDA Ireland’s core sectors of focus. These are AI/digitalisation, semiconductors, health, and sustainability.
By prioritising digital transformation, innovation, and inclusive growth, ‘Adapt Intelligently’ signals a clear intent: Ireland is committed to evolving with the times while reinforcing the conditions that have made it a preferred destination for American enterprise.
Ireland’s access to the US market is a strategic asset of immense value. American companies in Ireland are not only major employers and taxpayers but also key drivers of research, exports, and skills development. Simultaneously, Irish businesses continue to make significant inroads across the Atlantic, strengthening our economic resilience and diversifying our global footprint.
The strength of the Ireland-US relationship provides a critical buffer against external shocks. It ensures that, even as the world changes, Ireland remains plugged into the world’s largest and most innovative economy. In the years ahead, our ability to leverage this partnership will be central to safeguarding jobs, attracting new investment, and sustaining prosperity for future generations.
As we confront today’s challenges and prepare for the uncertainties of tomorrow, we must continue to nurture our transatlantic ties—with vision, adaptability, and ambition. The US has been Ireland’s partner of choice as we chart a course through an ever more complex world. The transatlantic bridge, built over a century ago, has been and will continue to be, a mutual source of support, prosperity, and resilience for citizens of both countries.
