Geopolitical volatility appears to have dented the investment appetite of businesses in Ireland. That’s according to InterTradeIreland’s last business monitor which suggests firms here are adopting a “play it safe” policy in the face of the current market turmoil.
The all-island agency’s latest monitor, which is based on the opinions of 750 businesses in Northern Ireland and the Republic, revealed that the majority of companies (55 per cent) were “maintaining a stable footing”.
While there were still signs of growth from 32 per cent of businesses, investment aspirations were said to be “muted”.
When asked about their plans for 2025, only a small percentage of firms (5 per cent) said they were considering major investments in new markets or capital, while nearly half (49 per cent) are focused primarily on maintaining their current position.
“It seems that external pressures are forcing most businesses to play it safe and adopt a ‘steady as she goes’ approach rather than plan for growth,” InterTradeIreland’s director of strategy Martin Robinson said.
“Currently there are elevated external challenges with local and global trade policy uncertainty and lingering geopolitical tensions which may be curbing the appetite for investment,” he said.
“We see that rising overheads and energy costs remain the top internal concerns for firms on the island- each impacting more than half of businesses, driven in large part by global factors,” Mr Robinson said.
Other persistent challenges include recruitment difficulties, the survey found with 40 per cent of businesses which have tried to recruit in the last two years struggling to find staff.
Businesses also reported cash flow issues (18 per cent) and reduced demand (17 per cent).
“However, while most businesses have maintained staffing levels, there is a slight uptick in hiring expectations, particularly among larger firms. This could signal some recruitment optimism despite the difficulties,” the survey said.
