Just 16 per cent of Irish companies see geopolitical disruption from war or a second Donald Trump presidency in the US as a “potential constraint” compared to a global average of 43 per cent.
That’s according to the latest international business report from Grant Thornton.
“This lack of concern appears to be driven by the continued belief that geopolitical disruption is unlikely to bring any negative headwinds, despite the upcoming US presidential election in November,” the consultancy’s survey of business attitudes in 28 countries said.
These attitudes influence the level of optimism held by medium-sized Irish firms about the outlook for Ireland’s economy for the next 12 months, it said, with two-thirds of companies surveyed envisaging a positive 12 months ahead.
Romantasy, QuitTok and other words from a dystopia-coded year
Have Ireland’s data centre builders shot themselves in the foot through their own greed?
The old order of globalisation may be collapsing – and bringing Germany with it
Wonderwallets: the cost of everything in 2024, from Oasis tickets to Leinster House bike shelter
Despite the positive attitude, there was a marginal slip in confidence among Irish enterprises compared with the previous survey.
A key factor impacting the level of optimism is a 16-point spike in the number of Irish firms seeing labour costs (44 per cent) as a constraint on growth.
Grant Thornton said companies are potentially still grappling with inflationary pressures from the cost-of-living crisis, with almost three-quarters (74 per cent) expecting to pay salary increases over the next 12 months.
“The latest Grant Thornton IBR report paints a unique picture of Ireland, with our medium-sized firms paying relatively little heed to potential economy uncertainty or geopolitical disruption over the months ahead,” said Grant Thornton head of deal advisory Patrick Dillon.
“Perhaps buoyed by the state’s healthy finances, this stands in contrast to our international peers, but we remain remarkably optimistic despite some concerns in relation to increased labour costs as a constraint on future business growth,” he said
- Sign up for the Business Today newsletter and get the latest business news and commentary in your inbox every weekday morning
- Opt in to Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Join The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here
