As voters head to the polls this week they find themselves with a monumental task – selecting which candidate and party will best serve Ireland in the coming years.
Dave Russell, CEO, GoldCore Ltd
As with many countries, Ireland faces a range of challenges, some known and many unknown. There is much speculation about how events outside of our control will impact us in the coming months. Selecting who is best placed to handle these can seem impossible.
In Ireland we are currently navigating a landscape marred by domestic challenges and international uncertainties of equal size. As an open economy we find ourselves more exposed to these risks than others and it is now a question of which arrow could take out this house of cards.
Earlier this month the European Commission forecast a 0.5% contraction in Ireland’s GDP for 2024. This highlights our economy’s sensitivity to global market fluctuations. With much of Ireland’s fiscal health tied to multinational activity, the potential for changes and volatility in global markets could have a direct impact on Irish households and investments.
The election of President Trump has brought about much uncertainty in the medium term, on account of his “America First” pledge. Since his victory, and in the run up to his inauguration Trump has doubled down on this pledge, leading many wondering how this will impact the Eurozone, and of course, the Irish economy. Reshoring of US companies is a growing uncertainty ahead of the inauguration, and beyond.
It’s not just Trump that is likely to impact our relationship with businesses located here. Any shift in corporate tax policies from a new government will affect Ireland’s attractiveness to multinational corporations. These companies play a pivotal role in Ireland’s economy. Any relocation of operations or decline in corporate tax revenue could significantly impact our finances. Vulnerabilities such as these underline the importance of preparing for potential economic shocks.
This uncertainty is understandably compelling individuals to reassess their financial strategies. When faced with a number of concerns from a domestic housing crisis to global economic shifts, these dynamics emphasise the need for us to take financial matters into our own hands, and set our personal portfolios to be financially resilient. This is where gold shines as a prudent hedge against volatility and uncertainty.
