As a small, open economy, Ireland is vulnerable to geopolitical and global economic pressures. The lessons of Brexit and the new trading relationship between the EU and the UK have aided government and industry planning for the United States-European Union framework agreement on reciprocal, fair and balanced trade. While global tax reform will likely impact some business decisions, Ireland’s stable political and economic environment should sustain its attractiveness for international business in the near term.
Like other nations, Ireland is continually increasing its resources to fight cyber-attacks, and the government’s refusal to concede to a May 2021 ransomware attack on its national healthcare system has set a strong precedent to not give in to malicious behavior. Legislation to implement an investment screening regime for foreign direct investment in Ireland came into effect in January 2025.
The government is eager to support businesses and showed this throughout the pandemic and more recently during periods of high fuel cost inflation, when business subsidies ensured domestic businesses’ survival throughout numerous lockdowns. Regarding long-term business support, the roll out of nationwide broadband and other physical infrastructure projects can be slow. Underinvestment in energy infrastructure has resulted in a lack of security around energy supply. Project Ireland 2040 is the government’s plan to provide for regional development and to improve the nation’s infrastructure with a focus on the digital economy. The plan is based on the premise that one million extra people will be living in Ireland in 25 years.
While there are calls from industry groups for an increase in capital spending, suppliers continue to face significant price pressures at current levels when doing business with the public sector. Strong competition from Irish and European suppliers with geographic localization advantages dictates that U. S. exporters must offer a combination of innovative and high-quality products at competitive prices.