More than two-thirds (68%) of Ireland's senior business leaders believe the Irish economy will be flat or in decline this year, according to a new survey.
A survey of more than 700 business leaders by law firm Mason, Hayes & Curran found that almost a quarter (23%) believe the Irish economy will weaken this year, while nearly half believe (45%) believe that growth is unlikely.
About 82% say they are avoiding merger and acquisition activity this year, and 60% believe the Organization for Economic Co-operation and Development's 15% corporate tax rate will have a negative impact on the economy.
While 61% said they plan to increase spending on digital transformation, only 14% expect to increase office space resources this year “to reflect changes in working patterns post-pandemic.” .
Among respondents, 43% expect weekly office occupancy to be between 25% and 50% this year, 39% expect office occupancy to be between 50% and 75%, and 1 in 10 expect office occupancy to be between 50% and 75%. predicted to be less than 25%. .
Three-quarters of business leaders said they expected the price per square meter of commercial real estate to fall by the end of 2024.
Business leaders' top concerns this year are staff recruitment and retention (27 percent), meeting new regulations (26 percent), and business costs (24 percent).
From a regulatory compliance perspective, the biggest hurdles are the amount of regulatory changes (33%), complexity of requirements (23%), and resource constraints (23%).
“It's cheap to blame the lowest paid people for the challenges in our economy.”
Will Carmody, managing partner at Mason, Hayes & Curran, said companies are “increasingly required to adapt their operations, reporting and strategic planning to evolving regulatory standards.” . In this dynamic legal landscape, it is more important than ever to ensure that organizations are informed and have the right advice. ”
Less than half of respondents said they felt adequately prepared for both the upcoming Corporate Sustainability Reporting Directive and the Central Banks (Personal Responsibility Framework) Amendment Act 2022. , is expected to have the biggest impact on Irish businesses this year.
When it comes to sustainability, 89% of companies said that ESG (environmental, social, and corporate governance) factors have a significant or moderate impact on their business plans and decision-making.
The survey also found that business leaders are conscious of the impact of the EU Artificial Intelligence Law, which is expected to be passed this year. About 42% said they believed the law would improve productivity, but 32% said they were concerned it would expose them to more risks.
