Global trade and geopolitical tensions to hurt domestic demand as Ireland 'particularly exposed' to external shocks

Despite recent shocks, Central Bank of Ireland governor Gabriel Makhlouf said Ireland was entering a new period of uncertainty from a position of strength

11/06/2025 Dublin, Ireland.

Rising geopolitical tensions, shifting trade policy and growing economic uncertainty have increased the risks facing Ireland's financial system, which is "particularly exposed" to recent external events, the Central Bank has warned. 

Publishing its first Financial Stability Review of the year on Wednesday, the regulator said that Ireland's small, open economy, which is highly reliant on foreign direct investment, was especially vulnerable to recent trade tensions.