Directors of Irish business have raised a warning flag to the government believing that the economy is overheating according to the Director Sentiment Monitor, a quarterly survey of director sentiment by the Institute of Directors in Ireland (IoD).

The survey of 237 of IoD members including chief executives, senior executives, non-executive directors and chairpersons, shows that 36% are uneasy about the possibility of Ireland’s economy overheating and 43% believe that it may be doing so.

As March 2019 grows closer, Ireland's business leaders believe Brexit is the single biggest risk facing their organisation at 26% compared to 18% in the first quarter. The most significant opportunities for growth are expected domestically (39%) followed by the EU (19%). The US has dropped from 18% to 7%. It is anticipated that emerging markets will provide significant opportunities for growth for just 7% of respondents. 

Fifty seven percent of respondents have called for significant improvement in accountability for corporate misconduct followed by greater focus on long-term planning and reporting (54%), explaining the contribution of business to the wider community (44%) and better transparency in financial disclosures (40%). Areas requiring some improvement include shareholder engagement (64%), corporate culture (61%), stakeholder engagement (60%) and explaining the contribution of business to the wider community (48%). 

Commenting on the survey, Chief Executive at Institute of Directors in Ireland, Maura Quinn said, "While business sentiment generally remains positive in Q2 and there are optimistic signs in expectations for domestic growth, it's quite clear Ireland's business leaders are concerned this growth is unsustainable. Combined with Brexit, severe talent shortages and political flux this makes for uncertain times for corporate Ireland."

Source: www.businessworld.ie