Irish tech sector shows strong growth despite global uncertainty, says Bank of Ireland’s head of Technology Sector Paul Swift.
“Ongoing uncertainty caused by the application of retaliatory tariffs may yet prove to be an opportunity for Ireland. In a time of crisis, investors seek sanctuary and certainty of a stable, pro-business environment; a proposition with which, Ireland is synonymous”
Ireland’s technology sector demonstrated remarkable resilience in 2024, with employment growing by over 14,000 jobs despite ongoing global economic pressures, according to Paul Swift, head of Technology Sector at Bank of Ireland.
“Despite some negativity regarding job losses in the sector over a number of years, employment was up 14,000 (+8.3%) in Q4, 2024 on the same period in 2023,” Swift reported.
The sector now employs over 106,000 people across multinational companies, many with US headquarters. Major technology giants including Amazon, Google, Salesforce, Microsoft, Apple, Meta and Oracle are all actively recruiting for hundreds of positions in Ireland.
Tech stocks weather tariff storm
While recent US tariff announcements initially caused significant market volatility, Swift notes that major technology stocks have shown resilience.
“Whilst the ‘Magnificent Seven’ (Alphabet, Apple, Amazon, Meta, Microsoft and Nvidia) lost more than $1.8 trillion in market value initially post the US Tariff announcement, these stocks have rallied and regained some of their lost value in the interim,” he explained.
However, Swift warns that with 145% tariffs now applied to China, “it is inevitable we will see further stock market fluctuation in the times ahead.”
Entertainment industry faces new challenges
The potential impact extends beyond traditional tech companies. President Trump has signalled plans to impose 100% tariffs on foreign-produced films entering the United States.
“Developments on this will be monitored with interest by the well-established Irish media sector,” Swift noted.
Ireland positioned as safe haven
Despite global uncertainties, Swift sees opportunities for Ireland to benefit from its stable business environment.
“Ongoing uncertainty caused by the application of retaliatory tariffs may yet prove to be an opportunity for Ireland,” he said. “In a time of crisis, investors seek sanctuary and certainty of a stable, pro-business environment; a proposition with which, Ireland is synonymous.”
Digital services sector remains protected
Looking ahead, Swift believes Ireland’s tech sector is well-positioned to weather current challenges.
“The vast majority of businesses that comprise the technology sector in Ireland are classed as digital services providers and therefore not directly affected by tariffs, for the time being at least,” he explained.
However, he cautioned that broader market uncertainty could still impact the sector: “Downside risk associated with broader uncertainty could impact sales volumes for digital services as customers may choose to pause technology investment while trading uncertainty continues.”
Infrastructure investment needed
Despite the positive outlook, Swift emphasised that continued growth depends on addressing key challenges.
“There are increasing calls from businesses to see a determined uplift in investment by government in infrastructure and dependable energy,” he stated.
“Likewise, the issue of providing access to affordable housing for employees remains a significant challenge.”
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