As a small-open economy highly dependent on trade and, in particular, US investment, Ireland is particularly vulnerable to a more protectionist stance under a new President, according to Goodbody Stockbrokers.
The two way US-Ireland business relationship now stands at an all-time high. Collectively US investment in Ireland amounts to $343bn and directly supports 140,000 jobs in Ireland. On the other side of the Atlantic, Irish companies directly employ roughly the same number, in all 50 states across the United States.
Goodbody Stockbrokers warn if Brexit marks the reversal of decades of European integration, the election of Donald J. Trump could potentially mark a change in the direction of economic and trade policy globally.
Trump's stated domestic economic policies are focused on reducing income and corporation tax rates across the board, cutting regulation, a clamp-down in illegal immigration and introducing an ambitious infrastructure programme.
Mr Trump’s pre-election comments about lowering US corporate tax rates to 15% is one potential threat which in time may see less US investment into Ireland. This could be compounded by any potential US economic slowdown, leading to lower employment levels in Ireland in turn. This would have implications for retail and SME lending activity volumes and asset quality in time.
Source: www.businessworld.ie