DAVY VIEW

The current US administration’s approach is now firmly ‘America First’ away from long-held bilateral cooperation. Aside from a renewed increase in uncertainty, further EU rearmament efforts are likely. Nonetheless, we think Ireland remains well-placed to navigate high uncertainty and tariffs. The economy’s concentration in high-productivity sectors is a strength rather than a weakness, as 2025 showed. Furthermore, the need for investment in infrastructure and housing can underpin economic growth for many years even if global economic uncertainty remains high. For the week ahead, notable data releases include consumer prices for the euro area and US.