Businesses in Ireland confident heading into 2026

Irish businesses in the European Union expect tariffs to have an impact on the wider economy in 2026, but very few see them as a direct threat to their own operations.
A survey by the Association of Chartered Certified Accountants (ACCA) found that while 84 per cent of small and medium enterprises (SMEs) anticipate tariffs will affect the broader business environment, just 2 per cent cited them as a specific risk to their own organisation.
Instead, firms pointed to more immediate domestic pressures, with the cost of doing business cited as the top risk to growth by 40 per cent of respondents.
However, despite these perceived challenges the overall outlook among Irish SMEs remains upbeat. Almost nine in ten businesses said they are either as confident or more confident about the year ahead compared with the same time last year.
This confidence is reflected in employment expectations as only 3 per cent of businesses said they anticipate job losses in the year ahead. Almost every business surveyed (97 per cent) expects employment levels to either increase or remain stable through 2026, pointing to a steady labour market across the SME sector.
Investment plans for businesses look to be taking a cautious approach as nearly three in ten SMEs expect to increase investment over the coming year, while a further 65 per cent said they anticipate investment will remain broadly in line with current levels.
Growth remains the main priority for 30 per cent of businesses as they noted expanding operations as their top focus for the year ahead. Upskilling staff is emerging as a key area, particularly in digital capabilities. Almost a quarter of residents said that training employees in artificial intelligence (AI) is a priority.
This move reflects the increasing role of the evolving technology across sectors. While global factors such as tariffs are on the radar, the survey suggests Irish SMEs are more immediately concerned with managing costs and keeping their businesses competitive at home, it said.
“That the vast majority of businesses expect stable or increased employment, alongside sustained investment levels, is a strong signal of underlying confidence in the domestic economy”, said Stephen Noonan, the head of ACCA Ireland.
“While challenges remain, particularly around costs and the pace of digital change, businesses are clearly focused on growth and on equipping their people with the skills they need, including in emerging areas such as AI”, he said.
In the UK the picture is quite different in business confidence with initial jitters causing drops in key metrics like growth and investment intentions, though some December surveys hinted at minor upticks, partly from budget-related tax compromises, but overall sentiment stayed cautious amidst ongoing economic concerns.
The Institute of Directors (IoD) reported confidence near record lows even after the budget, while the Confederation of British Industry (CBI) noted weak private sector activity and hiring intentions in December.
Business sentiment remained subdued following the November Budget, with leaders expressing concern over weak growth prospects and hesitant to invest or hire, even as the holiday season brought mixed signals for retailers.
Businesses were struggling with rising costs, tightened funding and economic uncertainty are making it harder to plan, invest and grow with confidence. The IoD’s monthly survey indicated bosses were fearing for the worst. Growth predictions were also downgraded across the entire forecast period, which is likely to keep businesses on edge about their prospects.
In its headline metric, overall business confidence about the UK economy in a snap poll after the Budget barely changed, inching up by one point from -73 to -72, demonstrating the sense of peril directors are left in.