IDA Ireland client companies are generally optimistic on the prospects for their businesses, despite the current challenges and uncertainty in the global environment, the agency has told an Oireachtas committee.
In a written statement provided to the Joint Committee on Enterprise, Trade and Employment, the IDA said it has "sight of a healthy pipeline" for the first half of next year.
The inward investment body said that since it reported its mid-year results in early July, it has seen a continued strong flow of investment into Ireland.
But it also told TDs and Senators that it is now evident that the global economy faces severe headwinds next year.
The outlook it said is dependent on the Russia-Ukraine war, inflation, monetary policy and geopolitical developments.
"Our Foreign Direct Investment base of companies are not immune to these headwinds. IDA is staying close to its clients particularly at this time of uncertainty as companies review their global cost base, which may impact jobs in Ireland," the statement said.
"IDA continues to monitor the situation in the global technology sector and has ongoing engagement with major technology employers," it added.
"IDA provided an update to the Department of Enterprise, Trade and Employment earlier this week and will remain in close contact with the Tánaiste and his officials on any further developments," it added.
The statement came as Facebook parent Meta announced plans to reduce its workforce globally by 11%, in a move that could see up to 390 staff leave its Irish operations.
Last week Twitter also announced it was cutting around a half of its workforce around the world. It employs 500 people here in Ireland.
"The technology client companies that have in recent days sounded warnings about reducing costs will in some cases take several weeks to work through the detail of job reductions in their Irish sites," the IDA said.
"In many cases, companies have business units in multiple global locations, and it may take time before the detail of any impact on Irish operations is fully worked out and communicated," the agency said.
The IDA added that where redundancies are taking place in client firms, it works with those companies to understand the skills profile of impacted staff.
"Those profiles are then shared with clients of both IDA and Enterprise Ireland that are hiring and that may be looking for similar skills," it stated.
"Technology is now pervasive across all sectors and the need for tech skills across the entire industrial base has never been greater," it added.
The IDA also said that it provides financial and non-financial supports to its client companies.
"In the current environment, a key focus for IDA is to partner with the existing FDI base in Ireland to ensure companies are best positioned to be resilient in the near-term and positioned for renewed growth in a green and digital future," it said.
But the organisation also warned that to remain successful in the years ahead Ireland must remain competitive in a range of areas, including talent provision, education, training, stable and consistent policymaking and competitive corporation tax.
It added that the country must also address immediate competitive issues around housing, energy, water, infrastructure and planning.
"These acute capacity constraints risk impairing the positive impact of Ireland's FDI growth, negatively impacting Ireland's cost competitiveness relative to other locations and eroding Ireland’s comparative productivity, talent and innovation advantages," it said.
"Continued action at speed and scale to address these challenges is essential if we are to successfully move to an internationally competitive low carbon, high tech economy," it said.
The agency also said that over the past three years, foreign direct investment into Ireland has shown remarkable resilience despite shocks from Brexit, the pandemic and Russia's invasion of Ukraine.
