REMOTE WORKING IN IRELAND

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In 2024 we will for sure see advancements in technology, including artificial intelligence (AI), machine learning, and automation, are reshaping roles and skill requirements.

Ireland would like to believe it is a frontrunner in AI development in Europe, has seen substantial investments from multinational firms in AI research centres.

Collaborative efforts between the Irish government, educational institutions, and businesses will need to equip the workforce with vital digital skills.

The release of ChatGPT in November 2022, have widened AI’s application scope in workplaces, allowing the creation of various content types. The gap between the desire to use AI and actual implementation is expected to narrow as confidence in AI grows among employers and workers in 2024.

Diversity and Equality

In Ireland the call for diversity, equity, and inclusion will amplify in 2024 as organisations recognise the business value it brings. Diversity in teams fosters innovation, creativity, and better decision-making. Diverse recruitment practices, inclusive workplace culture, and equal opportunities for all employees should be a minimum requirement.

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Fáilte Ireland’s, Irelands Tourist Board, recent appointment as a Sustainable Development Goal (SDG) Champion for 2023-2024 exemplifies Ireland’s commitment to a sustainable future.

This initiative steers various industries, notably within the vibrant tourism sector, toward eco-conscious practices. Alongside 26 industry leaders, Fáilte Ireland advocates sustainable initiatives and raises awareness about the United Nations’ SDGs, fostering a culture of sustainable practices.

Additionally, in response to regulatory shifts, EU mandates compel organisations to transparently report their environmental impact. These directives reinforce the necessity for robust climate strategies and proactive compliance with ESG disclosures, fostering accountability and sustainable practices.

Corporate governance remains a dynamic area, with many developments over the course of 2023 affecting companies of all sizes and business types. This is expected to continue in 2024, especially in the field of ESG.

Economic Outlook – ESRI [Economic and Social Research Institute]

According to the ESRI, the Irish domestic economy looks set to continue to grow in 2023 and into 2024. However, owing to the disproportionate impact of the multinational sector on headline economic data, it is a somewhat nuanced outlook.

The ESRI expects GDP, which is very heavily influenced by the Multinational Enterprise (MNE) sector, to contract this year by 1.6 per cent.

This is the first episode of negative GDP growth since 2012; however, the factors determining this outcome are very different. On the other hand, modified domestic demand (MDD), which captures consumption and modified investment, is set to increase by 1.8 per cent in the present year.

In the past, GDP has generally tended to overstate the degree of growth in the domestic economy, in the present case, however, it actually understates the degree of activity in the domestic economy.

Inflation is still exerting a negative impact on the Irish outlook. While the pace of price increases has been declining on a persistent basis to its present rate, the ESRI still expect the Consumer Price Index (CPI) to increase by 6 per cent in the present year and 3.2 per cent in 2024. This represents an increase on their previous forecast as inflation rates have not declined as rapidly as previously expected.

While the economy is experiencing slower rates of growth, the Irish labour market continues to perform robustly, with unemployment stabilising at approximately 4 per cent over the past year. Notwithstanding, the moderation in activity domestically and the slowdown in international trade, the domestic Irish economy is presently operating at capacity, in particular in relation to employment intensive sectors like construction.

In this environment, additional domestic pressures are likely to feed through to prices in the short term. However, targeting expenditure towards addressing infrastructure bottlenecks and improving the productive capacity of the economy can alleviate capacity constraints in the medium term.

Commenting on the report, author Prof Kieran McQuinn of the ESRI stated: “The Irish economy, while operating near enough to full capacity, does look set to experience more moderate rates of growth over the short to medium-term.”

The view from Europe

Ireland’s general government budget balance is expected to remain in surplus in 2023, but to decrease to 0.9% of GDP from 1.7% in 2022. This is due to a larger increase in expenditure than revenue.

In 2024, the surplus is forecast to shrink further to 0.6% of GDP before rebounding to 1.0% in 2025. Revenue growth in 2024 and 2025 is projected to be supported by resilient, albeit moderating, private consumption.

Moreover, the assumed gradual phase out of VAT discounts is also expected to increase revenues. Expenditure growth is driven by investment plans and considerable social spending in 2024.

Thanks to the fiscal surplus and high nominal GDP growth, the general government debt-to-GDP ratio is forecast to decrease from 43.0% in 2023 to 41.4% in 2024, and 40.2% in 2025.