CEOs in Ireland remain largely optimistic about the broader business environment, according to the annual CEO survey from employers group Ibec.

Expectations for 2025 among business leaders are in line with last year, but the overwhelming majority (88%) anticipate that the cost of doing business will continue to rise this year.

A further six in 10 firms expect increased demand and turnover, along with growth in both domestic and export sales, again unchanged from last year.

The research, conducted before the Programme for Government was finalised, shows that political uncertainty in Ireland as a ‘business risk’ has notably decreased compared to the previous year.

However, there is growing recognition of the impact or potential impact of rising geopolitical risks on businesses, with concerns over international trade and the risk of tariffs having increased 8% year-on-year.

The top two policy priorities identified for the new government were housing (78%) and cost of doing business (74%), with 88% expecting that the cost of doing business will continue to rise in 2025 compared to 62% who believe turnover will increase.

Almost all participants (92%) experienced increases in the cost of doing business in 2024, primarily due to labour cost pressures (96%) and input cost inflation (90%).

The top three internal business priorities identified by CEOs are the overall cost of doing business (62%), talent retention, upskilling, and attraction (51%), and improving productivity (47%).

Externally, the primary concerns are the cost of doing business (79%), business regulation and ease of doing business (54%), and international trade risks (30%).

“CEOs report that while the overall outlook remains positive, recent geopolitical shifts have significantly altered the landscape," said Fergal O'Brien, executive director of lobbying and influence.

"This is evident in the sharp rise in concerns over international trade and potential tariffs. Notably, the research was conducted before the most recent US announcement of intent to pursue tariffs, meaning current concerns are likely even higher.

"The positive news is that despite this, many of the growth obstacles for CEOs are EU and domestic factors. The EU’s Draghi Report highlights major challenges for Europe—including high energy costs, project delays, regulatory burdens, and an incomplete Single Market—issues that are equally relevant to Ireland. 

"Ireland has strong potential to remain competitive, supported by a skilled workforce, openness, stability, energy potential, and infrastructure development.

"To unlock its full economic potential, the government must pursue key commitments—such as enhancing competitiveness, accelerating housing and infrastructure projects, and reducing regulatory burdens—with clarity and speed.”

Around 213 CEOs and business leaders were interviewed online for the survey between 5 December and 15 January.

Photo: Fergal O'Brien. (Pic: Supplied)