Ireland’s infrastructural challenge will not be solved by “diluting resources with widespread handouts”, Ibec has said. In a thinly veiled criticism of Government budgetary policy the employers’ group said that after five years of “remarkable expansion” the economy was now at “an inflection point” which hinged on the delivery of “large-scale” infrastructural projects.
“As we approach the budget announcement the Government faces two choices: to use the budget as an opportunity to outline a vision for the country we aim to build over the next five years, or to use the surplus to put as much money as possible in people’s pockets,” Ibec’s chief economist Gerard Brady said.
The last two budgets have been framed around generous cost-of-living supports. “Budget 2025 should prioritise global competitiveness by enhancing investment offerings, fostering innovation and investing in critical skills and infrastructure to drive our economy forward,” Mr Brady said. “This can only be achieved by addressing strategic priorities rather than diluting resources with widespread handouts.”
In its report Ibec claimed the potential for further growth was being undermined by the “under-delivery” of critical infrastructure in water, energy, transport and skills.
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“Ireland has clear potential to compete in the years ahead, driven by a skilled and growing workforce, energy resources and significant improvements in national infrastructure,” Mr Brady said. “Successfully delivering on these priorities would be economically transformative for the country. We are now at an inflection point where achieving this vision hinges on our ability to deliver. To reach our potential we must begin delivering today.
“Too often the focus is on cost efficiency in large-scale projects, but the greater and more immediate risk to economic growth, social cohesion and fiscal stability lies in our failure to complete these projects,” he said.
In terms of the outlook Ibec said that while the Irish economy was experiencing some moderation in growth after five years of expansion, the outlook remained positive. It predicted the economy would expand by 2 per cent this year in gross domestic product (GDP) terms and by 2.7 per cent in 2025.
Ibec’s report highlights a number of global uncertainties that have the potential to derail Ireland’s growth prospects, including global trade protectionism, rising geopolitical uncertainty and growing competition for foreign direct investment. US presidential hopeful Donald Trump has made no secret of the fact that he plans to build a wall of tariffs around the US economy if elected
Ibec said it expected Irish exports to grow by 5 per cent this year. “The longer-term outlook for Irish trade is, however, heavily reliant on global political developments,” it said.
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