The impact of Brexit on Ireland’s economy has been both positive and negative. On the positive side, Ireland’s economy has grown at a faster rate than the UKs since the Brexit vote, with a forecasted growth of 4.9% in 2023. The country’s membership in the EU and its customs union has allowed it to diversify its economy and not rely solely on the UK market. Certain areas of the Irish economy, such as the tech sector, have flourished due to the country’s access to a market of 450 million people and its 12.5% corporate tax rate.
However, Brexit has also had negative impacts on Ireland’s economy. Increased trade costs have lowered Irish exports of goods and services by approximately 3-8% in 2030. The UK is an especially important market for certain sectors, such as the agri-food sector, where around 40% of exports are destined for the UK. Additionally, two-thirds of Irish exporters make use of the UK landbridge to access continental markets. The Northern Ireland Protocol has also caused issues for Irish businesses, as they now need to deal with new trade rules, customs procedures, and work permits for non-Irish and non-UK personnel in the UK.
The government’s domestic policy responses can mitigate some of the Brexit impacts, but the full effects of Brexit on Ireland’s economy will continue to evolve. The Irish government has implemented several measures to support businesses affected by Brexit, including the Brexit Loan Scheme, the Brexit Adjustment Scheme, and the Brexit Loan Guarantee Scheme. These measures aim to provide financial support to businesses that have been negatively impacted by Brexit, as well as to help them adapt to the new trading environment. The impact of Brexit on Ireland’s economy has been both positive and negative. While the country’s membership in the EU and its customs union has allowed it to diversify its economy and not rely solely on the UK market, increased trade costs and the Northern Ireland Protocol have had negative impacts on certain sectors of the Irish economy. The government’s domestic policy responses can mitigate some of the Brexit impacts, but the full effects of Brexit on Ireland’s economy will continue to evolve.
