It seems that everything in respect of the economy at the moment is doom and gloom. However, Ireland is not in a recession! In fact, Economic forecast for Ireland per the European Commission shows us that Ireland's economic outlook is improving, with real GDP growth expected to reach 4.9% in 2023 and 4.1% in 2024. Here at Mason Alexander, we certainly agree with the EC as we are seeing a strong labour market, rising employment expectations, and anticipated foreign investment which coincides with the European Commission’s estimations. Outside of the professional services desk, we are seeing strong performance from multinational corporations who are looking to hire and therefore, there is no indication that we are currently in a recession.

In terms of my desk, Mergers and Acquisitions (M&A) was impressive in 2021 with record dealmaking and fundraising, Private Equity firms showed returns that outpaced any other asset class. 2022 was also incredibly strong which linked with strong hiring trends here on the Irish Market. In 2023, M&A in Ireland showed signs of a slowdown which is to be expected given uncertainty around interest rates and inflation. However, hiring trends have remained strong with companies still looking to retain top talent. We have also noticed that investors are shifting focus from tech to sub-asset classes like growth equity and infrastructure. Therefore, while there might be some short-term slowdowns in Q1 and Q2, hiring still remains strong and the outlook is positive.

Another area that merits mention is the Private Credit market, which is rapidly growing globally and is incredibly strong here in Ireland. This is due to a number of factors, mainly due to the convenience, yield, and attractive returns when compared to traditional investment options. The size of the market is estimated to be approximately $2 trillion globally. This will see positive growth throughout 2023 given that most firms have strong underwriting and restructuring capabilities to deal with inflation and rising interest rates. In terms of hiring, the Irish market is very strong, and mainly global tier-1 organisations are currently looking to expand and grow their teams in Ireland.

Here at Mason Alexander, we are certainly optimistic about the future of the Irish market. Ireland's economy is on a positive trajectory with several opportunities for growth in the second half of 2023 and beyond. If you are looking to transition into Investments or would like to find out more about the Irish Market in respect of Private Equity and Private Credit, please feel free to reach out to me directly at d.philpott@masonalexander.ie.