The Irish economy is bracing for a whiplash effect from US President Donald Trump’s new tariffs, but a report from Ibec, the country’s largest employer group, says Ireland can expect a bright spot in its trade and investment numbers due to imports and exports of AI-related products.
Ibec’s latest economic forecast highlights the growing demand for products used in AI infrastructure, such as servers, data storage, and computing hardware. The group says these imports will have a positive impact on Irish trade and investment this year, with the tech sector contributing significantly to the country’s GDP.
AI Infrastructure Imports on the Rise
Data from the Central Statistics Office (CSO) shows that imports of servers, which are crucial for AI computing, have increased by **24%** in the past year, while imports of computing hardware have risen by **17%**. This trend is expected to continue, driven by the growing need for fast and efficient data processing, which is essential for AI applications.
According to Ibec, the Irish tech sector is well-positioned to capitalize on this demand, with many multinational companies, such as Google, Amazon, and Facebook, already established in the country. These companies require large amounts of computing power to support their AI-powered services, which is creating a significant demand for AI-related products.
Volatile Outlook for Irish Economy
While the growth of AI-related trade provides a bright spot for Ireland, the overall outlook for the country’s economy remains “volatile” due to uncertainty around global energy prices. Ibec is forecasting a **1.4%** growth rate for the economy this year, which is lower than previously predicted.
The group warns that the uncertainty surrounding Brexit and global trade policies, including the US-China trade war, is creating a challenging environment for businesses. However, Ibec says that the tech sector’s resilience and adaptability will help Ireland to weather these challenges.
What this means
The growth of AI-related imports and exports is creating new opportunities for Irish businesses, particularly in the tech sector. As the demand for AI-related products continues to rise, companies in Ireland are well-positioned to benefit from this trend. However, the country’s economy remains vulnerable to external factors, and businesses will need to remain agile to navigate the current market uncertainty.
