Ireland

Domestic economy remains resilient despite moderating growth

The Irish economy is expected to do well through the remainder of 2026 and into 2027, although the pace of expansion is likely to moderate following several years of exceptionally strong growth. Domestic demand continues to provide a solid foundation for economic activity, supported by a still-robust labour market, rising household incomes and sustained public investment. Household consumption has remained resilient in recent years, although spending growth is expected to slow as employment growth eases and inflation continues to weigh on purchasing power. Government measures aimed at limiting the impact of higher energy and living costs should provide some support to households, while public expenditure and investment are expected to remain important drivers of growth. Business investment is also likely to remain strong, particularly in infrastructure, technology and data-centre-related projects. However, the contribution from the multinational sector is less supportive in 2026 than in previous years. Following significant frontloading of activities and transactions during 2025, base effects are likely to weigh on headline growth figures, while a more uncertain global environment could reduce the pace of investment and trade-related activity among multinational enterprises.

While domestic demand should continue to underpin growth, the economy remains vulnerable to changes in the international environment, especially given the importance of multinational corporations to exports, investment and tax revenues.Ireland's open economy and strong links with the United States leave it particularly exposed to shifts in US trade, tax and industrial policies. At the same time, subdued economic growth among key European trading partners could limit export demand and business confidence.

After declining in 2025, corporate insolvencies have accelerated again during the first half of 2026, rising by around 5% year-on-year. The increase has been concentrated in wholesale and retail trade, information technology, agriculture and manufacturing. Looking ahead, cost pressures, weaker demand conditions and tighter financing conditions are likely to continue affecting businesses in vulnerable sectors. Risks remain particularly elevated in energy-intensive industries, including chemicals and parts of manufacturing, as well as in transport and logistics, where margins continue to face pressure.

Strong public finances despite higher spending

Ireland's public finances are expected to remain strong in 2026 and 2027, although fiscal surpluses are likely to narrow from the record levels seen in recent years. The government has continued an expansionary fiscal stance, increasing spending on housing, healthcare, infrastructure, climate-related investments and cost-of-living measures. Despite this, robust tax revenues – supported by high employment and continued multinational activity – should ensure that the public sector remains firmly in surplus.

As a result, public debt is expected to continue declining relative to the size of the economy, further strengthening Ireland's fiscal position. Nevertheless, policymakers remain aware of the concentration risk associated with corporation tax receipts, a significant proportion of which is generated by a relatively small number of multinational firms. This dependence continues to represent one of the principal long-term vulnerabilities in Ireland's public finances.

Ireland's current account balance is also expected to remain in surplus throughout 2026 and 2027. A large goods trade surplus will continue to underpin the external position, although the outlook remains sensitive to developments in global trade and potential changes in US-EU economic relations. The services balance is likely to remain broadly balanced overall, albeit with considerable volatility arising from multinational corporations' intellectual property and licensing transactions. Meanwhile, the primary income balance is expected to remain structurally negative due to the repatriation of profits by foreign-owned firms. Despite these distortions, Ireland's underlying external position remains strong, supported by the competitiveness of its export sector and continued inflows of foreign direct investment.

Political stability supports policy continuity

The general election of November 2024 resulted in the continuation of a broadly similar governing arrangement, with Fianna Fáil and Fine Gael forming a coalition government supported by a group of independent representatives. While Sinn Féin increased its parliamentary representation compared with the previous election, its electoral performance fell short of expectations and opinion polls since then have suggested a more fragmented opposition landscape. Recent polling indicates that gains by opposition parties have increasingly benefited smaller centre-left parties, including the Social Democrats, rather than Sinn Féin alone. The next general election must be held no later than January 2030.

The government's priorities remain centred on addressing long-standing challenges in housing, healthcare and infrastructure, while also responding to evolving geopolitical conditions. Defence and security policy have gained greater prominence in the past few years, with increased funding allocated to modernise Ireland's defence capabilities and strengthen cooperation with European partners. Although defence spending is expected to rise steadily over the coming years, it will remain modest by European standards as a share of GDP. Despite closer security cooperation with both the European Union and the United Kingdom, Ireland's longstanding policy of military neutrality remains broadly unchanged, making NATO membership unlikely in the foreseeable future.

Payment

Cheques are still used for both domestic and international commercial transactions, however for international transactions, the use of bills of exchange is preferred, together with letters of credit. Bank transfers are common, with SWIFT transfers being utilised regularly. Direct Debits and standing orders are also becoming more recognised as an effective payment method, and are particularly useful for domestic transactions. Assignment of invoice is accepted both pre- and post-supply of goods and/or services.

Debt Collection

Where there is no specific interest clause, the rate applicable to commercial contracts concluded after August 7, 2002 (Regulation number 388 of 2002) is the benchmark rate (the European Central Bank’s refinancing rate, in force before January 1 or July 1 of the relevant year) marked up by seven percentage points and applied to the contracts via a percentage calculated per day past due date. For claims exceeding €1,270, debtors may be threatened with a “statutory demand” for the winding-up (closure) of their business if they fail to make payment or come to acceptable terms within three weeks after they receive a statutory demand for payment (a “21-day notice”).

Amicable phase

The debt collection process usually begins with the debtor being sent a demand for payment, followed by a series of further written correspondence, telephone calls, personal visits, and debtor meetings. If the two parties are unable to reach an amicable settlement, the creditor may begin legal proceedings.

Legal proceedings

If a defendant fails to respond within the allotted time to a court summons (either a plenary or summary summons before the High Court, a civil bill before the Circuit Court, or a civil summons before the District Court), the creditor may obtain a judgement by default based on the submission of an affidavit of debt without a court hearing. An affidavit of debt is a sworn statement that substantiates the outstanding amount and cause of the claim. It bears a signature attested by a notary or an Irish consular office. The claim amount at stake will determine the competent court: the District Court, then the Circuit Court, and, for claims exceeding €38,092.14, the High Court in Dublin, which has unlimited jurisdiction to hear civil and criminal cases and to assess, in the first instance, the constitutionality of laws enacted by Parliament (Oireachtais).

Fast-track procedure 

In any of the three courts, if the debt is certain and undisputed, it is alternatively possible to request a fast-track summary judgment from the competent court.

District Court: amounts up to €6,348

For contested debts, a civil summons is served on the debtor, with the originating court proceedings setting out the claim and amount alleged owed. The debtor then files a Notice of Intention to Defend, indicating that he intends to contest the case, at which point the court fixes a hearing date. The case is heard before a judge, who decides whether to issue an order for judgment (a Decree).

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Dans ce cas, un effet civil est remis au débiteur, qui dépose une Appearance (document formel indiquant l’intention de comparaître du débiteur). Le débiteur demande ensuite formellement, en soumettant une notice for particulars, des informations sur la réclamation, fournies par le créancier. Le débiteur doit présenter une défense dans le délai imparti. Le créancier adresse ensuite au défendeur une notification formelle l’informant de la date de l’audience. Lors de cette audience, chaque partie défend son dossier et le juge rend une décision.

Haute cour : pour les montants supérieurs à 38 093 EUR

High Court: amounts over €38,093

In front of the High Court, a summary summons is served on the debtor, who then files an Appearance. The creditor makes an application to the Master of the High Court for judgment by way of motion and grounded by sworn affidavit. The debtor can reply to the claim by sworn affidavit. If the Master is satisfied that the debt is due and owing, liberty to enter final judgment is granted. However, if the Master is satisfied that the debtor has a genuine dispute, the case is sent for a plenary hearing. During the plenary hearing, the merits of the case are heard either as oral evidence or affidavit. A High Court hears the case and makes a determination.

The commercial court – a special division of the High Court, created in 2004 – is competent to hear commercial disputes exceeding €1 million, included in a commercial list or cases concerning intellectual property, and is able to provide a suitable and rapid examination of the cases submitted. At the discretion of the commercial judge, proceedings may be adjourned for up to 28 days to enable the parties to refer to alternative dispute resolution practices, such as conciliation or mediation.

Normally, obtaining a decision may take a year. However, this timeframe may be doubled if compulsory enforcement is required. Appeal claims brought before the Supreme Court may take an additional three years.

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Enforcement of a Legal Decision

A judgment is enforceable as soon as it becomes final. If the debtor fails to satisfy the judgment, the creditor can request the competent court to order execution by way of attachment and sale of the debtor’s assets by the Sheriff. There is also the possibility to obtain payment of a debt through a third party owing money to the debtor (garnishee order).

For foreign awards, enforcement depends on whether the decision is issued in an EU member state or a country outside the EU. For the former, Ireland has adopted enforcement mechanisms; such as the EU Payment Order, or the European Enforcement Order when the claim is undisputed.

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Insolvency Proceedings

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OUT-OF-COURT PROCEEDINGS

Informal negotiations may take place, and any agreement must be unanimously adopted by all creditors.

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EXAMINERSHIP

Examinership is an Irish legal process whereby court protection is obtained to assist the survival of a company; The company may then restructure with the High Court’s approval. It provides a maximum 100 day period in which a court appointed official (the examiner) seeks to take control of the company and manage it so that the company may continue to trade. The procedure may be initiated by the company, its directors, or one of its creditors. Once the examiner has been appointed, no proceedings may be commenced against the company. Its functions are to examine the affairs of the company and to formulate proposals for its survival. The examiner must formulate proposals for a compromise or scheme of arrangement to facilitate the survival of the relevant body as a going concern. They can be accepted by the creditors but they must be validated by the court.

RECEIVERSHIP

The procedure arises in the context of secured creditors and provides a framework in which they may act so as to enforce their security interest. A receiver is appointed to a company by either a debenture holder or the court to take control of the assets of a company, with a view to ensure the repayment of the debt owed to the debenture holder, either through receiving income or realising the value of the charged asset.

LIQUIDATION

The terminal process by which a company is wound up and dissolved, this process is conducted by a liquidator who takes possession of assets and distributes the proceeds from their sale in accordance with the priority of repayment. The liquidator is also required to investigate the conduct of the directors of the company and prepare a report for the Office of the Director of Corporate Enforcement (ODCE). Dependent of its view, the liquidator may also be required to bring restriction proceedings against one or more of the directors. The procedure can be started by a competent court (court liquidation), the creditors (creditors’ voluntary liquidation) or the debtors (members’ voluntary liquidation).

Last updated: 06/072025