The full impact of inflation is being felt by Irish businesses, as 91 per cent of companies experienced increased costs in the last three months of 2022, which was 20 per cent higher than the global average of 71 per cent.
However, the latest global survey from the accounting body ACCA has shown positive signs for Irish economic performance in 2023 when compared to other big economies around the world, with access to finance and business revenue remaining strong.
The ACCA’s Global Economic Conditions Survey found that while the global economy is showing signs of steadying, many indicators remain weaker than in previous years.
In terms of how Ireland compared to the rest of the world, the research highlighted it was outperforming rival countries across a range of important economic indicators.
This included access to finance, with only 5 per cent of businesses here reporting funding problems, compared to 21 per cent globally. Just 20 per cent of local companies are experiencing decreased income compared to 39 per cent internationally.
The survey also revealed that significantly fewer Irish companies were experiencing invoicing challenges than their international counterparts, with only 7 per cent of businesses facing problems with prompt payments compared to 24 per cent globally.
The survey highlighted that the issue of increased costs was more heightened generally across Europe, when compared with the rest of the world, with the squeeze on energy prices caused by the war in Ukraine a significant contributory factor.
Caitriona Allis, head of ACCA Ireland, said: “The results of our Global Economic Conditions Survey are indicative of the challenges that face the global economy in 2023. While there are undoubtedly hurdles to be overcome nationally and internationally, Ireland’s strong indicators relative to other economies across a range of key areas, including access to finance and prompt payments, highlights strong levels of transactions and business performance in the Irish economy and positions us well to weather the storm in the year ahead.
“While this year will be challenging there is an underlying confidence that the Irish economy is well placed to overcome these hurdles.”
