According to the annual benchmarking report published by the National Competitiveness Council, Ireland has moved from 25th to 16th on the Swiss-based International Institute for Management Development (IMD)’s competitiveness rankings. The improvement in Ireland’s ranking is attributed to progress made in areas such as the environment for start-ups, regulation, and access to credit.

Ireland now has the fastest growing economy in Europe, with GNP growth of 5.2% in 2014 being driven by a strong export performance, all of which is contributing to strong employment growth.

Ireland’s agri-food sector is one of the country’s strongest export performers. Last year, the value of Irish food and drink exports increased by 4% to reach almost €10.5bn for the very first time marking cumulative growth of 45% or €3.2bn since 2009.

Warning

While on the face of it the latest findings from this report may appear good news, particularly for Irish exporters competing in the global market, it is worth noting than much of the gains made have been outside our control.

External factors such as a weak euro against our main trading partners in the UK and US, coupled with low energy prices, have boosted Ireland’s competitiveness in international markets. While these factors are working in our favour at present, businesses must be cautious that tailwinds can rapidly turn into headwinds, eroding the competitiveness gains made to date.