FDI flows driving recovery ‘can’t be taken for granted’

Ireland is attracting huge amounts of inward foreign investment, but the country can not take for granted that the flows that helped drive the economy out of crisis will be repeated, a leading economist has warned.

Davy Stockbrokers chief economist Conall Mac Coille said Dublin office space constraints, lingering issues about tax and concerns about Europe’s proposals for a new common corporate tax regime all continue to weigh on a “favourable” outlook.

“Tax is one issue but I do not think it is the doomsday scenario that some have been predicting,” said Mr Mac Coille. “I believe it [CCCTB, common consolidated corporate tax base] is dead in the water. It has little to do with economics, and more to do with politics.”