The latest edition of the Global Economic Conditions Survey reveals that business confidence in Ireland rose more strongly here than elsewhere in Europe in the last quarter.
The global survey conducted by the Association of Chartered Certified Accountants saw the share of respondents reporting confidence gains more than doubling from 12% to 25%.
It also suggests that the global economy recovered substantially in early 2012 and regained some of the dynamism it had lost over the last year.
However, Irish accountants are increasingly concerned about the viability of the Government finances and its fiscal adjustment programme. Only 22% believe spending over the next 5 years will be at the right level, down from 40% three months ago. More than half - 58% - now believe that government will underspend, up from 44%, and over a quarter of those expect dangerous levels of underspending.
More than half of respondents in Ireland report problems with late payments and concerns about customers going out of business as it appears that financing problems and poor demand have taken their toll on cash-flow. These instances are more common in Ireland than any other major ACCA market.
Confidence gains were fairly consistent across regions and industries, although the Americas and Western Europe seemed to benefit the most in early 2012, as did manufacturers and distributors, particularly in the high-tech sectors.
"While the survey points to a pattern of modest recovery in 2012, it is clear that there are many issues and concerns in the Irish context. Globally it is too early to say whether the pattern of modest recovery is sustainable, but it seems to rely on a sustained recovery of demand in the West, supply in the East and confidence in sovereigns," said Liz Hughes, Head of ACCA Ireland.
