FDI Business Monitor Issue 2 2025

After five years of strong expansion, growth in the Irish economy is beginning to moderate. However, the overall outlook remains optimistic, supported by an increase in exports and consumer spending, and low unemployment.

Ireland’s food and drink industry continues to perform strongly, bolstered by steady growth in food retail trade – even amid rising producer and consumer prices. Wholesale oil and gas prices continue to decrease, though ongoing geopolitical tensions in the Middle East present a potential risk. Overall, Ireland’s food and drink sector remains strong at home and abroad, with monthly exports rising to €1.4bn, and imports remaining relatively constant at €0.9bn.

Ahead of a potentially uncertain period for the Irish economy, Food Drink Ireland continues to engage with Government ahead of Budget 2026 to underline the importance of the food and drink sector to Ireland’s economy, and the numerous cost pressures faced by businesses. The upcoming budget is a key opportunity to utilise national policy in supporting our sector’s competitiveness and growth.