17 Mar The Luck of The Irish: How to Invest in Ireland’s Growing Economy
Ireland has emerged as one of the fastest-growing economies in the European Union (EU) in recent years. To mark St. Patrick’s Day, a day synonymous with Irish culture and heritage around the world, it’s worth taking a closer look at investment opportunities in Ireland.
Over the last decade, Ireland has undergone a remarkable transformation, transitioning from a struggling economy to one of the most dynamic and innovative in the EU. This growth can be attributed to a highly educated and skilled workforce, with almost full employment, a favourable business environment that has attracted global tech companies like Google, Facebook, and Apple to establish their European headquarters in Ireland due to its tax policies and skilled workforce. Additionally, the government has shown a commitment to supporting innovation and is actively driving the country towards a greener future.
For potential investors, there are several promising sectors in the Irish market. We have been closely monitoring these areas and are excited to share them with you.
Ireland’s ageing population has led to a rising demand for healthcare services. The Central Statistics Office projects that the number of people aged 65 and over will have doubled by 2050. To address this issue, the government announced in September 2022 the single largest investment in Irish Health and Social Care Services in history, with €23.4 billion allocated in its Budget 2023. This builds on previous record investments in the health service in 2021 and 2022. These investments have allowed the government to continue implementing Sláintecare, their 10-year plan to modernise and transform the healthcare system in Ireland.
The country’s increased focus on healthcare presents significant investment opportunities particularly in digital health, medical devices, pharmaceuticals, and elderly care. The Sláintecare strategy also calls for greater investment in research and development, which could create opportunities for start-ups and innovative companies to develop new products and services.
Ireland has set ambitious targets to halve its greenhouse gas emissions by 2030 to reach net zero by 2050, creating significant investment opportunities in the renewable energy sector.
The Irish government aims to increase the proportion of electricity generated from renewable energy sources from 30% up to 80% by 2030, with a focus on developing onshore and offshore wind and solar energy resources. To support this, it introduced a number of policies, incentives, and schemes, such as tax incentives and the Renewable Energy Feed-in Tariff (REFIT) and Renewable Electricity Support Scheme (RESS).
With its favourable geographic location and weather conditions and government backing, the Irish renewable energy sector has potential to offer stable, long-term returns, aligned with a sustainable investment portfolio.
Ireland’s mild climate and fertile soil, combined with sustainable farming practices, have made its agri-food sector a significant contributor to the country’s economy, with further growth expected over the coming years.
The Irish government has set out its Food Vision 2030, a 10-year strategy aimed at positioning Ireland as a world leader in Sustainable Food Systems (SFS). The strategy encompasses agriculture, food and drink processing, fisheries, aquaculture and fish processing, forestry and forestry processing, and the equine sector.
In an opening address to the Agriculture, Food and the Marine Select Committee, Minister McConalogue noted that Ireland’s agri-food exports had increased by 22% in 2022, reaching a new record high of over €18 billion.
Given the weight of government’s support and global demand for high-quality Irish food products, investing in the Irish agri-food sector could offer a wide range of opportunities for investment.
Despite the pandemic, and rising cost of construction materials due to the war in Ukraine, the Irish real estate sector has seen steady growth in recent years, driven by strong demand from international investors and the limited supply of available housing in Ireland. The Irish government offers several tax incentives to property investors, such as mortgage interest relief and capital gains tax exemptions. This, coupled with the high demand for properties, strong rental yields, and tax incentives makes residential or commercial property investment in Ireland an attractive opportunity for both short-term and long-term returns.
Investing in Ireland
Ireland’s economic growth in recent years has been impressive and presents plenty of opportunities for those looking to invest in the country’s vibrant economy. So, this St. Patrick’s Day, raise a glass to Ireland’s success and if you’re considering investing in one of the fastest-growing economies in the EU, then please contact a member of the PX team who would be happy to discuss this with you.
The value of investments & the income derived from them can go down as well as up, and you can get back less than you originally invested. This article does not constitute personal advice. Prevailing tax rates and reliefs are dependent on your individual circumstances and are also subject to change.