Dáil Éireann Debate, Thursday - 29 June 2023
224. Deputy Bernard J. Durkan asked the Minister for Enterprise, Trade and Employment the countries from whence he sees the greatest competition for Ireland over the next five years in respect of the manufacturing and services sectors; and if he will make a statement on the matter. [31956/23]
View answerTogether, the manufacturing and services sectors comprise the vast majority of economic activity in Ireland.
Enterprise Ireland (EI), the state agency responsible for supporting the development of manufacturing and internationally traded services companies, acknowledges that the global landscape for the manufacturing and services sectors is highly dynamic and subject to evolving market conditions. While it is difficult to predict the greatest competition for Ireland in the next five years, several factors influence competitiveness in these sectors. It is important to note that competition can arise from unexpected sources as global dynamics and economic conditions evolve.
EI works closely with Irish businesses to identify market opportunities, enhance competitiveness, and develop strategic advantages in various sectors. Furthermore, EI provide support through market research, business development initiatives, innovation programs, and international networking opportunities, helping Irish companies navigate global competition effectively.
This is a period of change in the global trading environment, with a slowdown in the process of globalisation and moves toward open strategic autonomy in the EU. We must remain vigilant as we navigate these challenges. However, there are opportunities too, particularly as we work towards the twin green and digital transitions.
Earlier this month, the Institute for Management Development (IMD) published its World Competitiveness Yearbook 2023. The IMD Competitiveness Yearbook assesses and ranks 64 economies around the world based on their ability to create and maintain a competitive business environment. The rankings are based on more than 336 indicators grouped across four pillars: Economic Performance, Government Efficiency, Business Efficiency, and Infrastructure.
This year’s report ranks Ireland as the most competitive country in the Euro Area and the 2nd most competitive economy in the world. This is an improvement from 11th position last year. Ireland’s performance reflects steady progress across specific sub-factors over a number of years – such as under ‘Government Efficiency’, alongside strong economic results which have boosted its ranking under ‘Economic Performance’.
In their assessment, the IMD note that the top four countries are small, advanced economies which make good use of their access to markets and trading partners. Ireland places second to Denmark, with Switzerland, Singapore and the Netherlands rounding out the rest of the top five.
Earlier this year, the National Competitiveness and Productivity Council (NCPC) published Ireland’s Competitiveness Scorecard 2023, which benchmarks the competitiveness of Ireland’s economy against international peer countries. The Scorecard gathers a wide range of indicators on Ireland’s relative strengths and weaknesses, that influence our competitiveness position, and flags areas that are negatively impacting on competitiveness and where Ireland’s relative position is not keeping pace with its competitors.
The data in the Scorecard show that, overall, the Irish economy remains internationally competitive. However, there are still several critical areas where Ireland currently falls behind the countries against which we benchmark ourselves, most particularly in relation to energy, infrastructure, spending on R&D and venture capital, and interest costs to businesses.
Later this year, the NCPC will release its flagship annual publication, Ireland’s Competitiveness Challenge 2023 . This comprehensive report will make recommendations to Government on the best ways to drive productivity, improve Ireland’s competitiveness and achieve sustainable and inclusive growth in the Irish economy.
