The value of total global investment fell again during 2023 amid geopolitical tensions and trading blocs, according to a report from a Belfast-based trade advisory firm.
OCO Global, which has 160 analysts across 12 offices worldwide, predict the global economy will increasingly revolve around trading blocs aligned by political views in 2024.
The firm’s 2024 global outlook report said while global investment fell for the second successive year in 2023, there was marked shift to so-called ‘friend shoring’, where countries source and trade with their geopolitical allies.
OCO Global’s chief executive, Gareth Hagan said there is still potential for Northern Ireland firms to expand.
“Covid, wars in Ukraine and the Middle East, political populism and declining US-China relations are shaking the assumptions that once underpinned free trade and an open global market,” he said.
“We’re moving to a world of trading blocs and increased geopolitical tensions but that doesn’t mean there isn’t scope for local firms to grow.
“For instance, sectors such as space & defence, renewable energy, biotechnology, semiconductors, software and electrical components are expected to expand during 2024. "
Mr Hagan said the north’s expertise in aerospace, renewables, and life sciences, offer opportunities for businesses to get more involved in global supply chains, especially as disruption in the Middle East is prompting multi-nationals to source new suppliers closer to home.
“Beyond these areas, however, firms seeking expansion overseas will be able to do so if they stay alert and think tangentially,” he added.
“Last year OCO developed technology to create virtual trade corridors that help UK companies connect more easily with international prospects and take advantage of friend-shoring.
“We’ve also helped clients exploit the huge incentives being offered in the US and other markets.”
OCO Global’s report found global investment in battery power is booming.
The report also highlighted that investment in high growth sectors is concentrated in western markets. Almost 40% of all foreign direct investment (FDI) investment over the past three years in space and defence, renewable energy, biotechnology, semiconductors and electrical components has been in the US, Germany, UK, Spain and France.
Meanwhile, it estimates that only 10 of the 20 largest countries for inward FDI are back to pre-Covid levels of investment.
Of those 10, OCO said the Republic was one of five stand out high growth markets.
