Survey shows improvement in competitiveness

A major survey of companies in Ireland who are members and partners of the German-Irish Chamber of Industry and Commerce suggests that the Irish economy will grow modestly over the next three years.

Up to 50% of the participating companies intend to increase their employment in Ireland over that period.

The results of this survey are of major significance as Germany is the third largest provider of foreign direct investment in Ireland and German companies employ an estimated 20,000 people in Ireland.

German-Irish Chamber President Helmut Clissmann added, however, that Ireland’s minimum wage - currently €8.65 an hour - is seen as contributing to current challenges for businesses.

Mr Clissman said: "More than 50% of the companies which took part in the survey believe that the minimum wage in Ireland is not helpful, as it is high by international standards and therefore influences competitiveness."

The Chief Executive of the German-Irish Chamber of Commerce, Ralf Lissek, said that German companies seem to be adopting a more cautious assessment of Irish economic prospects in the coming years.

He said: "The forecasts for Irish economic growth from our members - 1.2% in 2011, 2% in 2012 and 2.6% in 2013 - are more conservative than forecasts from other research institutes and economic commentators. But this reflects the views of those working at the coalface of business between Germany and Ireland."

Mr Lissek added that is noteworthy that 75% of survey respondents felt that it is important for German companies to have an actual presence in Ireland if they want to be successful in the Irish market.

When asked what sectors offer most opportunities for Irish companies trading with Germany, 57% of respondents referred to the food sector, 41% to information technology, 40% to services, 35% to pharma and 30% to medical technology.

When the question was reversed and respondents were asked what sectors offered the greatest opportunities for German companies in Ireland, 68% mentioned renewable energy, 59% energy efficiency, 35% medical technology, 29% pharma, 22% biotechnology and 20% food.