Market Pulse Report Q2 2022 - Fitzgerald Power

M&A activity

According to data from Renatus, there were 226 deals completed in H1 2022 compared to 200 in H1 2021. Foreign businesses acquiring Irish companies have been the primary category of acquirers in both H1 2021 and H1 2022.

Irish economic outlook

IBEC have noted that some parts of Ireland’s economy are in slowdown, as growth in consumer spending and investment has eased. Growth in consumer spending is expected to slow to 4% in 2023, while domestic investment will grow by just under 4%

Corporate tax

Corporate tax receipts in Ireland brought in nearly €9bn in the first half of 2022. Foreign direct investment continues to increase, with the number of investments in the first half up 9% on the same period in 2021.

Global economic trends

Global economic growth is expected to be lower than previous estimates over the second half of 2022 as the US Federal Reserve continued to increase interest rates, targeting a range of 2.25% to 2.5%. The United States officially entered a recession in Q2, although the economy continues to create new jobs, 528,000 in the last month.

Rising prices

Inflation in the Eurozone rose 8.6% year on year in June, with energy remaining the biggest contributor to accelerating prices, rising 41.9%. Core inflation, which excludes volatile factors such as energy but also food, alcohol and tobacco remained stable at 3.7%.