This article was first published in the February 2015 Ireland edition of Accounting and Business magazine.

It’s encouraging to see a strong recovery in Ireland based on solid economic foundations. This recovery is proceeding at a rapid pace. Vision-net’s Business Review 2014, published in January 2015, highlights a broadening of recovery right across the country and a brighter outlook for business and investment in the year ahead.

Foreign and domestic investment in the economy has increased, unemployment has decreased steadily, and exports continue to grow. Critically, a return of business confidence and a rise in consumer sentiment is evident. A range of indicators are showing clear signs of a positive economic future.

The report also found that corporate insolvencies were down 7 per cent on 2013’s figure and were at their lowest level since 2009. A number of key industries, which struggled during the downturn, demonstrated significant improvements last year. Corporate insolvencies affecting both the construction and motor sectors dropped 23 per cent, while the manufacturing sector saw a 13 per cent reduction.

There was also a significant rise in company startups last year. Over 17,900 were recorded – up an impressive 14 per cent on 2013’s total and the highest total of startups seen in Ireland since 2007. Over a quarter of these were based in the professional services sector which supports the entire economic eco-system. Encouragingly both the retail and hospitality sectors, which are critical to the overall health of the economy as they drive employment, both saw increases compared to 2013. 

The majority of industries saw an increase in startups last year – six of these, namely agriculture, fishing, hospitality motor, professional services and social and personal services, recorded their best figure for startups since the Millennium. 

When reviewing the findings, managing director Christine Cullen said: ‘The seven-year high in company formations, and the best-performing December since 2000, signals a positive outlook for the economy in the coming year.

The Irish economy is taking a positive turn towards recovery and growth. Businesses are operating in a less hostile environment.

‘It’s equally encouraging that the counties of Cork, Limerick, Clare, Tipperary, Louth and Wicklow all saw increases in startups in 2014. This could be a sign that start-up levels are broadening across the country and climbing back to pre-recession levels.

‘There’s little doubt that the outlook and forecast are very positive for
the Irish economy and lessons have been learned.’

JP Wickremasinghe is marketing executive at Vision-net, Dublin.