Ireland is well equipped to weather the latest external shock—the imposition of tariffs by US President Donald Trump, according to a new report from stockbrokers Davy.
The report highlighted that Trump’s tariff policies have disrupted global trade and heightened uncertainty, with potential repercussions including a US recession and a slowdown in global economic growth.
While acknowledging that weaker global growth could dampen foreign direct investment (FDI), Davy remained optimistic about Ireland’s economic outlook. The firm pointed to Ireland’s resilience in the face of previous external shocks such as Brexit and the Covid-19 pandemic.
Ireland benefits from “remarkably favourable structural advantages, including a well-educated workforce and a strong national financial balance sheet,” the report stated. These factors, Davy argued, position the country well to navigate the current global challenges.
However, the report also warned of a key downside risk: a decline in global corporate profitability could result in lower tax revenues from the small group of multinational companies that contribute the majority of Ireland’s corporation tax.