There is one thing Irish governments have been able to rely on completely in recent years. Economic growth has continued relentlessly, with jobs rising and tax revenue pouring in. The pandemic and the inflationary surge following the Russian invasion of Ukraine caused only temporary interruptions. As most other developed economies struggle through low growth and pressurised public finances, Ireland’s economic exceptionalism has stood out. Eurozone growth averaged 1 per cent over the past three years, while Ireland’s economy has grown by 4.5 per cent annually.

The broad economic model has been generally accepted across Irish politics – note Sinn Féin’s visits to the big multinationals before the last election. Instead, the economic debate has been all about how the money is spent on areas such as housing, healthcare and infrastructure. Growth and more jobs have been taken for granted.

So this week has been a bit of a wake-up call. It will be some months before we can assess its real significance. But the past few days felt different. First, Ireland, which has generally got off lightly from multinational job cuts, got a wallop from a 20 per cent reduction at Meta, where 350 jobs will be lost. Then, the latest jobs figures from the Central Statistics Office (CSO) showed a downturn in the first quarter, albeit a small one. A crucial few months lie ahead to see how this all plays out.

It is important to recognise these signs, but also to understand the uncertainties. The key thing about the biggest tech playerssuch as Meta is that – despite making enormous profits – they need to find cash to fund their enormous investments in AI. This is not a straight........

© The Irish Times