Ireland well-placed to fill EU ‘horse-whisperer’ role

Ireland is “well-placed” to become a gateway to the EU for American and Asian businesses after Brexit, PwC has claimed.

“Despite Brexit, Ireland remains the fastest-growing EU economy with nearly full employment and a continued strong FDI [foreign direct investment] pipeline,” said PwC Ireland managing partner Feargal O’Rourke.

“As a small, open economy, seizing the opportunities will be important. Maintaining and increasing competitiveness — both at national and company level — will be critical.

“And, as the only English-speaking EU country, post-Brexit, with a pro-business environment and access to over 400 million consumers, Ireland has a great opportunity as a gateway to the EU for US and Asian businesses. Indeed, as a consequence of Brexit, the US will be looking for a new ‘horse-whisperer’ to interpret and engage with the EU. Ireland is well-placed to fulfil that role,” he said.

Mr O’Rourke also reiterated his call for Irish businesses to prepare for the worst and “intensify” their contingency planning for a no-deal Brexit.

“With ongoing political chaos in the UK, businesses still have no clarity and the risk of a disorderly Brexit on March 29 has increased. Irish businesses need to intensify their no-deal contingency planning,” he said.

Mr O’Rourke was speaking as PwC published its global CEO confidence survey to coincide with the opening of this year’s world economic forum in Davos.

The key finding of that was a record jump in pessimism among company leaders. Nearly 30% said they think global economic growth will decline in the next 12 months; up from just 5% this time last year.

CEOs’ views of the global economy mirror the major economic outlooks, which are adjusting their forecasts downward in 2019.

“With the rise of trade tension and protectionism it stands to reason that confidence is waning,” said PwC global chairman Bob Moritz.

The unease around global economic growth is also affecting CEO confidence about their own companies. Some 35% of CEOs said they are “very confident” in their own organisation’s growth prospects over the next 12 months; down from 42% last year.

Mr O’Rourke said Irish business leaders continue to be positive about Ireland’s economy and their own company outlook, “despite external uncertainties such as Brexit, global trade wars and a changing tax landscape”.

“We see many Irish business leaders working hard to have sustainable growth strategies to ensure their businesses remain fit for growth, while managing the downside risks,” he said.