‘Weird’ is the best way to describe the state of the economy in 2021
A week after the latest instalment of the annual state of Ireland economy survey was released, IKEA’s chief executive Simon Wilkinson warned of the danger of a “stunning” fall in the value of the country’s currency.
In his annual report to the Irish Government, Wilkinson said: “IKEA is on track to report a record-breaking quarterly loss of €1.6 billion (1.8 billion pounds) in 2019 and 2019 saw a marked decline in the level of revenue, net income and profit.”
In 2019, we experienced the first ever year of negative net profit in the company’s history, and the financial year following was the worst in the firm’s history.
“While we are facing the most difficult period in our history, we believe that we are on a path to recovery and that we will be able to return to profit this year.””
I believe the recent downturn is the most significant in the history of the company, and it will be a year of uncertainty for the rest of us.”IKEa will be forced to find additional ways to generate more income and invest more of its own cash flow into new projects.
“While we are facing the most difficult period in our history, we believe that we are on a path to recovery and that we will be able to return to profit this year.”
We must also take into account that the recent negative financial impact from Brexit and the recent economic downturn will have an adverse effect on future business plans.
“Mr Wilkinson also highlighted the impact that Brexit had on the Irish economy.”
Brexit has brought a sharp and significant reduction in the amount of foreign direct investment (FDI) coming into the country,” he said.”
This has resulted in significant downward pressure in exports and has also reduced the competitiveness of our manufacturing base.
“Given the negative impact of Brexit on the economy and the current economic conditions, I would expect a reduction in export growth in 2021.”
Read more about the economy from Ireland: IKEAs latest report shows Ireland’s economy was “in a tailspin” as it struggled to recover from Brexit, it is expected the Irish government will unveil measures to ease the impact on businesses.
Speaking ahead of the report’s release, the IKEa boss also urged companies to focus on growing their businesses rather than investing overseas.
“I would urge all businesses to consider the impact of a Brexit and also look at investing abroad,” he added.
In his report, Wilkinson pointed out that there were more than 20 million new jobs created in Ireland in the first nine months of 2021 compared to the same period in 2020.
The Irish Times