61% of Irish businesses are optimistic about the outlook of Ireland's economy for the next 12 months, according to new data from Grant Thornton Ireland.
It reveals that just 29% are pessimistic about the future, with Ireland ranking highest in Europe in terms of economic outlook.
Grant Thornton’s latest Global Business Report survey reveals that sentiment has improved across nearly all countries, with 57% of firms globally optimistic about the economic outlook over the next 12 months.
The findings reveal that 52% of Irish businesses expect their revenue will increase over the next 12 months by comparison to 27% reported in the first half of 2020.
Just 17% expect their revenue will decrease, according to the survey.
41% of Irish businesses said they expect to increase their profitability over the coming year, while 19% expect a decrease, with 34% remaining the same.
Michael McAteer, Managing Partner of Grant Thornton Ireland, said that while our outlook is improving, it is important to note the context of the increases.
"In many cases the improvements we are seeing are due to firms benchmarking the next 12 months against the very depressed economic environment of 2020 due to Covid-19.
"Even with vaccines being rolled out, the reality is it will still be some time before we return to anything approaching normality.
"Shortage of finance remains a significant concern, with 31% of Irish firms identifying it as a business constraint over the next 12 months.
"This is against the backdrop of record monetary easing and fiscal support for businesses to provide assistance and alleviate cash flow concerns arising from Covid-19," he said.
According to the report, even with Brexit implications taking hold, 31% of Irish businesses expect to increase their exports this year, while just 9% expect to decrease their exports in 2021.
Meanwhile, the survey reveals that 27% of businesses expect to grow revenue from non-domestic markets, as 16% of firms also expect to increase the number of countries they sell to.
