Just over half of CEOs in Ireland forecast an economic slowdown this year

Just over half of Ireland’s chief executives believe the country’s economic growth will slow over the next 12 months, amid hopes the euro area could avoid a recession in 2023.

The global CEO survey published by PwC included responses from 87 CEOs in Ireland.

And while 52 percent expect Ireland’s growth to slow this year, a third still believe it will improve. The survey also found that 85 percent of CEOs in Ireland are confident about the revenue growth prospects for their companies in 2023. This compares to 89 percent worldwide.

79 per cent of CEOs surveyed in Ireland have no plans to cut jobs this year, despite cost cutting in the current environment of high inflation, and 89 per cent said they will not take pay cuts in the fight to retain talent.

Irish consumer confidence rose to a seven-month high for the second straight month in January. Davy last week noted signs that CPI inflation has peaked, falling energy prices, hopes the euro zone may be avoiding a recession and the reopening of the Chinese economy have boosted sentiment in Europe.

The PwC survey found that inflation and macroeconomic volatility remain top concerns for CEOs in Ireland. Just over a fifth of them also feel “financially exposed” to geopolitical conflicts.

PwC Ireland said that Russia’s invasion of Ukraine and general concerns about geopolitical conflicts have prompted many Irish CEOs to reconsider aspects of their business models.

Nearly half are investing more in cybersecurity and privacy, and 46pc is diversifying its product and service offerings.

“Despite the many uncertainties and risks affecting our economy, the survey suggests that Irish CEOs are confident about their own companies,” said Feargal O’Rourke, Managing Partner of PwC Ireland.

He added: “Irish CEOs are also more confident about Ireland’s economy than global CEOs are about the world economy, which may well be due to the relative strength of Ireland’s economy at the moment. Reassessing their operating models, continuing to invest in critical areas, and putting their people at the center are key to ensuring resilience.”

He said that despite global headwinds, Ireland’s economy is in a “good position” with strong tax revenues, FDI inflows, strong exports and employment.