Friday 24 March 2017

Weak euro helps mask rise in business costs - report

A customer carries his purchases in a shopping basket as he browses oriental foods displayed for sale inside a Tesco store in London
A customer carries his purchases in a shopping basket as he browses oriental foods displayed for sale inside a Tesco store in London

The weak euro has masked the fact that the costs of doing business in Ireland are on the up, according to a new major economic report.

The study from the National Competitiveness Council, which advises the Government on economic trends, said that although Ireland has become more competitive since the financial crash costs are again starting to rise.

The organisation found that Ireland “remains an expensive location in which to do business, relative to some of our key competitors” and added that the country is the third most expensive location in the euro area for consumer goods and services.

It added that several upward domestic cost pressures are now emerging, particularly in relation to labour, property and business services, although it added that the weak euro and low interest rates are helping to mask the full effect of these factors.

The report concluded that “there is a need to refocus efforts on minimising domestically controllable costs to the extent possible.”

The National Competitiveness Council chairman Peter Clinch said: “It is vital that we continue to take action to address unnecessarily high costs wherever they arise.

“In this regard, there is a role for both the public and private sectors alike to manage proactively their cost base and drive efficiency, thus creating a virtuous circle between the costs of living, wage expectations, productivity and cost competitiveness.”

Online Editors

Promoted articles

Also in Business