Kilkenny’s FDI Surge Highlights Economic Disparities in South-East

Kilkenny has experienced a notable increase in foreign direct investment (FDI), yet this development does not overshadow the ongoing economic challenges facing the wider South-East region of Ireland. According to the latest South East Economic Monitor 2025, conducted by independent researchers at South East Technological University (SETU), the South-East has struggled to keep pace with national economic growth since 2018.

While Ireland’s overall GDP has surged by more than 40% since 2019, the report indicates that the South-East has seen “virtually no growth” during the same period. The disparity between regions has become increasingly pronounced, with the economy of Dublin now more than 12 times the size of that of the South-East, despite having only three times the population. In 2021, this ratio was nine to one.

Regional Economic Challenges

The widening economic gap is attributed to concentrated growth in a few urban areas, particularly in Dublin and the South-West. Despite these trends, Kilkenny stands out as a bright spot for FDI within the region. The report noted that Kilkenny has experienced a significant uplift in investment, likely due to the presence of Abbott, a major employer. In contrast, Waterford has faced declines, including closures such as Cartamundi, underscoring the uneven distribution of economic opportunities.

Despite Kilkenny’s recent successes in attracting FDI, the South-East as a whole remains under-represented in agency-supported jobs. The region continues to receive considerably less public capital funding compared to the national average. The report highlights that the South-East has the lowest per capita investment at €1,738, which is about €7,000 below the national average.

Need for Strategic Investment

Kilkenny’s achievements in FDI offer a potential model for success. However, the region will require a substantial shift in capital allocation and support for large-scale projects to achieve sustained economic growth. The report emphasizes that, despite a strong national recovery post-pandemic—evidenced by buoyant tax receipts and resilient domestic demand—the benefits have not been evenly shared across the country.

The South-East continues to lag behind national averages in several key areas, including labour force participation, income tax receipts, disposable income, and public capital investment. As the report states, “The South-East, despite marquee projects like the North Quays, has not seen the same level of growth as other regions.”

The findings underscore the urgent need for targeted investment strategies that address the specific challenges faced by Kilkenny and the broader South-East region. Only through concerted efforts can the area hope to bridge the widening economic divide and create a more equitable distribution of growth across Ireland.