Ireland rated ‘one of the biggest Brexit beneficiaries’ according to survey



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Ireland will be one of the “biggest beneficiaries” of Brexit if it can attract major asset management companies to locate here, according to the founder and former CEO of Aberdeen Asset Management.

Addressing a PwC webinar on Ireland’s potential as a leading location for fintech and asset management companies, or fintech, Martin Gilbert said further consolidation is expected in the industry and will play a key role in refinancing. of the global economy after the Covid-19 pandemic and relieve pressure on public debt.

“Ireland has many strengths, including very talented people with language skills, and has a fantastic future as a world-class center for fund management,” said Gilbert.

“While Ireland has done very well as a fund management and processing center to date, it needs to figure out how to attract asset managers to locate here, so that the funds can be managed directly from Ireland,” he said , adding that if Then, “Ireland will be one of the biggest beneficiaries of Brexit.”

A survey conducted by PwC, coinciding with the webinar, has found that fintech and global asset management companies will increasingly look to Ireland as they grow their international operations over the next 12 months, even as the economy worsens today. Covid-19 crisis. .

It found that 67% of respondents – all global asset managers – plan to increase their presence in Ireland or relocate key activities here within the next 12 months.

More than 170 fintech and asset management companies have chosen Ireland as their location in the past two years, potentially creating more than 6,000 jobs, according to PwC’s Andrew O’Callaghan.

“Ireland has a great opportunity to be a leading center for asset management, particularly for high-value funds and fintech activity, in a post-Brexit world,” he said.

“The advantages are clear: highly talented individuals who have deep knowledge of the industry, well-established regional centers, continuous access to the EU market, and a common law jurisdiction similar to that of the UK with the benefits of the Travel between the two jurisdictions, ”said Mr. O’Callaghan said.

The findings contrast with the latest forecast for a near 4% decline in the Irish economy this year.

EY said it now sees a 3.9% GDP drop this year, with the “twin challenges” of Covid-19 and Brexit reshaping the economy.

However, EY also said that it expects Irish GDP to grow by as much as 3.5% next year. Last month, the Finance Department said it forecasts a 2.5% drop in GDP this year and just a 1.4% rise next.

“The pace of the consumer rebound in late summer led to an upward revision of forecasts across the island, but tightening restrictions and new levels of anxiety and concern have pushed projections down again,” said the EY Ireland Chief Economist Neil Gibson.

Ibec recently said that it expects a 2.6% drop in GDP this year, but that it will increase 3.1% in 2021.

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