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• COVID-19 pandemic, Brexit, and heightened international trade tensions are impacting on Ireland’s economy
• NCC highlights 20 targeted actions for Government across four key areas to feed into Budget 2021 and the National Economic Plan

Today (25th September), the Chair of the National Competitiveness Council (NCC), Dr Frances Ruane, launched Ireland’s Competitiveness Challenge 2020 report. Building on the Council’s previous Competitiveness Scorecard published in May this year, the Competitiveness Challenge 2020 notes that until early 2020 and the onset of the COVID-19 pandemic, the Irish economy remained broadly internationally competitive. However, there are several areas that are critical to a sustained economic recovery where we need to make improvements to reduce the competitiveness gap between Ireland and its international competitors.

On launching the report Dr Ruane said: “COVID-19 has brought about an exceptional level of global uncertainty, which is compounded in the Irish case by the approaching deadline for negotiating the future trading relationship between the UK and the EU, as well as heightened international trade tensions. As a small, highly open and concentrated economy, Ireland is heavily exposed to external shocks, making it vital that the economy retains its competitive position. At the heart of Ireland’s national competitiveness is creating an environment in which Irish businesses are able to compete successfully in international markets.”

In this context, Ireland’s Competitiveness Challenge 2020 identified four broad challenges that need to be addressed to put the economy on a sound footing.

• Support Ireland’s workers and leverage opportunities for upskilling,
• Address climate action in a competitiveness context,
• Invest strategically in Ireland’s physical infrastructure, and
• Resolve long-standing issues.

In its report, the Council makes 20 targeted and actionable recommendations to Government on how best to address these challenges.

Starting this year, the Competitiveness Challenge publication date has been brought forward, so that its recommendations can feed into the October Budget and to the European Semester process. This year it will also feed into the Government’s National Economic Plan, providing a focus on strengthening competitiveness and productivity as the recovery process gets underway.

Dr Frances Ruane added: “The Competitiveness Challenge identifies a range of recommendations that address both immediate competitiveness issues, and more medium-term challenges aimed at enhancing Ireland’s competitiveness and productivity performance. It is vital that progress and reform under the four broad areas identified by the Council continues over the course of the coming year to support the economic recovery and to ensure that future balanced growth can bring about an improvement in the standard of living for all of society.”

“The Council is very pleased that the Taoiseach has committed to publishing a formal Government response to our recommendations and the Council looks forward to progress being made in the key areas identified in this year’s report”.