2025 Business & Legal Sentiment Survey

Irish businesses are confident in growth prospects for 2025, but are braced for challenges such as mounting regulatory pressures, rising costs, and the impact of a change of government in the US. Our latest Business & Legal Sentiment Survey, based on responses from over 1,000 senior business and legal leaders, reveals widespread concern about regulatory changes and the potential impact of US policy.
Despite these concerns, professionals are optimistic about the outlook for both Ireland and business. The improved sentiment reflects growing resilience within the business community. 48% believe the Irish economy will grow by the end of 2025, compared to only 32% last year. Although 41% predict the economy will remain flat, only 11% foresee a contraction, a marked decline in pessimism from 22% last year. 20% predict M&A or reorganisations within their companies in 2025, up by 2.5% year on year, demonstrating enhanced confidence and a return to activity in a post-election year.
Will Carmody, Managing Partner, said:
"Our recent survey paints a more optimistic picture of Ireland’s economic outlook, with businesses increasingly focused on positioning themselves for long-term growth."
Challenges: Regulation, US Tax Reform, and Competitiveness Take Centre Stage
During 2024 there were 48 Acts and over 700 Statutory Instruments published in Ireland, mainly EU driven, which has been overwhelming for many businesses. Employment, technology and sustainability are three of the main areas of impact, including key EU legislation such as the Corporate Sustainability Reporting Directive (CSRD) and the EU Artificial Intelligence Act. However there has been domestic legislative change as well, such as the introduction of the new Planning & Development Act.
- 44% cite the volume of regulatory change as their biggest concern for compliance.
- 32% see regulatory changes as the biggest challenge for their business in the year ahead.
- 36% rank technology governance and 25% rank financial regulation as the areas presenting the most significant risk to their business.
Will Carmody, Managing Partner, said:
"The growing complexity and pace of regulatory change present significant challenges for businesses. Staying informed and engaging in proactive preparation is essential to ensure compliance and mitigate risks in this evolving landscape. The impact of non-compliance is not just legal, but reputational as well, so we have been working closely with clients to mitigate against these risks and ensure organisations are future proofed for changes in regulations."
US Tax Reforms Pose Risks to Ireland’s FDI
Political change in the USA has sparked concern in Ireland. Main areas of apprehension include tax changes and re-shoring pressure. 39% were concerned about US corporate tax changes, which could reduce Ireland’s attractiveness as a destination for foreign direct investment. This was closely followed by 38% citing re-shoring pressures, as US businesses may face growing pressure to return operations to the US.
Although less than 23% are worried about tariffs, the result does show the impact these considerations are already having on businesses in Ireland and the potential challenges for Ireland’s export economy.
Carmody added:
"Ireland’s competitiveness as a global business hub depends on our ability to respond to external risks, such as US tax reforms and re-shoring pressures. While these issues create uncertainty, Ireland’s long-established reputation for sustainable and successful growth offers businesses a strong foundation for resilience."
Barriers to Growth
Unsurprisingly, one of the main areas highlighted for improving competitiveness in the Irish economy was housing, closely followed by infrastructure. Other company specific concerns include rising business costs and staffing. Despite these challenges, Irish businesses are showing resilience and adaptability. By focusing on digital transformation, sustainability, and long-term investment, companies are positioning themselves to weather uncertainties and seize new growth opportunities.
- 33% of businesses cite housing shortages as the biggest obstacle to improving Ireland’s competitiveness. The next biggest area of concern was infrastructure at 32%, particularly in transport and energy, to support economic growth and investment.
- Along with regulation change, 19% of businesses face recruitment and retention challenges and 18% highlight rising costs as a critical concern for 2025.
Opportunities: Digital Transformation and Sustainability Drive Optimism
Given the dramatic innovation in technology over the last year, almost half of professionals, 42%, identify digital transformation as an area of focus. Another 20% prioritise product or service innovation. In the digital area, 40% are focusing on AI and machine learning integration, while 27% are enhancing cybersecurity, reflecting the need to protect against rising threats in this area. The main impact of AI on organisations, selected by 32% of professionals, is increased productivity, but this is balanced against 22% flagging associated regulatory compliance challenges.
Carmody noted:
"The integration of digital innovation into business strategies is a positive trend. Companies that invest in these areas are better equipped to adapt to regulatory demands while driving growth and competitiveness."
Navigating 2025
The survey reflects a business landscape balancing optimism with pragmatism. While challenges around regulatory compliance, tax risks, and domestic barriers remain, businesses are increasingly focused on leveraging innovation and sustainability to secure their future.
Will Carmody concluded:
"This survey highlights the adaptability and resilience of Irish businesses. While global economic conditions continue to significantly influence the Irish economy, robust domestic economic growth and healthy national finances provide significant buffers to external shocks. At Mason Hayes & Curran, we are committed to supporting our clients as they navigate regulatory complexities, manage international tax and tariff risks, and seize opportunities in digital transformation and sustainability."
Read more about our survey results in the Business Post (partially behind paywall), Business Plus and Irish Legal News.
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