Majority of company directors expect improved financial performance in second half of 2025

But survey reveals 43% feel more pessimistic about the overall prospects of the economy

Caroline Spillane CEO of the Institute of Directors said there is a 'sense of cautious optimism' among company directors regarding the near-term outlook, however, there are 'significant concerns about the impact of global trade tensions and increasing regulatory pressures'.

Despite geopolitical turmoil and mounting international trade tensions, more than half of company directors in Ireland expect an improved financial performance in the second half of 2025, a new survey shows.

The survey was conducted on 322 business directors by the Institute of Directors (IoD) focusing on areas such as regulation, competitiveness, and the economic outlook.

The survey found that 53% of business leaders expect improved financial performance in the second half of 2025. 

However, 43% feel more pessimistic about the overall prospects of the economy.

In terms of risks to their business for the rest of the year, 51% cited economic and fiscal pressures, while 42% cited international trade tensions. 

Geopolitical risks to the supply chain were cited by 28% of people.

Of the directors who believe that international trade tensions will be the greatest risk to Irish business for the remainder of the year, 54% believe that it will lead companies to reduce discretionary spending and investment while 48% said they expect consumers to delay spending decisions.

In particular, when respondents were asked about the potential impact of the proposed US tariff rates on EU goods and services, 43% said they expect a negative effect on their organisation’s competitiveness and business development while 32% stated it was too soon to tell.

IoD Ireland CEO Caroline Spillane said there is a “sense of cautious optimism” among company directors regarding the near-term outlook, however, there are “significant concerns about the impact of global trade tensions and increasing regulatory pressures”.

When asked what would be the main drivers for growth, 42% of directors said enhancement of products and services, while 38% said improvements to their customer or client experience and engagement, and 33% said digital transformation and innovation.

Lower on the list of priorities included becoming a sustainable business, accounting for just 10% of respondents.

The directors surveyed all represent a wide range of businesses as well as State or semi-State bodies, not-for-profit organisations, SMEs, and multinationals.

When asked about how important AI is for future business competitiveness, 40% of respondents said that is important for improving operational efficiency, while 25% believed that it is critical for staying ahead of competitors.