Irish firms more upbeat over future

IRISH companies are more optimistic than their British counterparts about the prospects for economic growth over the next 10 years, according to a new study.

A survey of companies across Ireland and Britain, by Barclays Bank, found as many as 82% of respondents believe Ireland will be a better place to do business in by 2021. Only 6% of companies said they felt economic prospects will have deteriorated over the coming decade.

In comparison, only half of British respondents to the same survey said they were positive about Britain’s long-term economic prospects. Just under 30% of those surveyed in Britain said they expect business conditions there to deteriorate in the next 10 years.

However, British-based optimism was more evident on a regional basis, than on a national footing. More than two-thirds of respondents in Scotland and the English midlands were all positive about the future, while just 44% of those respondents based in London shared that sentiment.

“It’s clear that the majority of businesses here believe in the longer-term fundamental strength of Ireland as a place to do business. It’s also telling to see that businesses in Ireland are generally more positive than our nearest neighbour, demonstrating the importance of our economic infrastructure and outward-orientated approach which facilitates exports and international investment,” said Andrew Hastings, chief executive of Barclays Bank Ireland.

The Irish optimism is rooted in hopes that the technology, hospitality and tourism sectors will be key in fuelling growth, while over 90% of respondents said that Ireland’s competitiveness will improve on a strengthening export sector.

Respondents were also confident of a strong increase in the number of international multinationals establishing headquarters in Ireland in the next decade, with a belief that foreign ownership of Irish companies will increase.

According to Mr Hastings: “Ireland has benefited from foreign direct investment for decades. While we aim to attract more international investment to stimulate economic development and job creation we need to be constantly cognitive of our competitiveness in terms of ongoing skills development and business infrastructure, endeavouring at all levels to safeguard and build on what we have.”