Competitiveness a challenge - survey

Competitiveness will be the biggest challenge facing chief executives next year, a new survey has found.

As a result, the survey says, 44 per cent of respondents expect that foreign direct investment into Ireland is likely to remain at current levels next year. Only 26 per cent of those surveyed expected a slight increase in foreign direct investment next year.

The survey of the top 1,000 companies in Ireland was carried out by property consultants CB Richard Ellis Gunne who said it got a 40 per cent response rate.

"With regard to the factors which are likely to have the most impact on economic activity in 2005, more than 35 per cent of respondents identified improving confidence as being the most significant factor to impact on Irish performance going forward," it said.

Almost 30 per cent (29 per cent) expect an improving US economy to benefit Irish economic prospects next year.

Asked about staff recruitment, 43 per cent replied that they expected to increase their workforce next year, with 35 per cent saying there would be no change in existing staff levels next year. It also found that 22 per cent said they expect to reduce staff numbers this year.

The survey found their head been a notable increase in the number of Irish chief executives who expect that the UK will never join the euro. It said 37 per cent of those who responded to the survey this year expect that Britain will never enter, up from 25 per cent last year.

Just 1 per cent expect Britain to enter the euro within 1-2 years, with 62 per cent expecting it to enter within 2-4 years.

The survey also found 52 per cent of respondents believed the Asian economy was likely to be the best performing economy over the next three years, with 24 per cent believing that the US economy would most likely be the best performing.