REVEALED: Kilkenny's foreign direct investment boost fails to mask regional stagnation

Kilkenny and the wider South-East region has struggled to keep pace with national economic growth, according to the recently published South East Economic Monitor 2025, prepared by independent researchers at SETU.

While Ireland as a whole recorded GDP growth of over 40% since 2019, the report states that “the South-East has seen virtually no growth since 2018.”

The report also states that the divergence between regions is becoming more pronounced.

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It posited that Dublin’s economy is now over 12 times the size of the South-East’s, despite having just three times the population. In 2021, the ratio was nine to one.

The researchers contend that this gap continues to widen, driven by concentrated growth in a small number of urban cores- particularly Dublin and the South-West.

Kilkenny however has been a notable bright spot for Foreign Direct Investment (FDI) in the region.

“Kilkenny has seen a significant uplift (likely due to Abbott),” the report noted. “Waterford (in comparison) has declined, with closures such as Cartamundi.”

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Nonetheless, the South-East as a whole remains under-represented in agency-supported jobs.

Despite Kilkenny’s strategic advantages, the entire region continues to receive far less in public capital funding than the national average.

As noted in the report, “The South-East, despite marquee projects like the North Quays, has the lowest per capita investment at €1,738 — around €7,000 below the national average.”

Although Kilkenny’s recent gains in FDI jobs offer a template for success, it appears that a significant shift in capital allocation and/or large-scale project support is needed for the county, and the South-East more broadly, to sustain consistent regional growth.

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The report notes that despite a strong national recovery from the pandemic, reflected in buoyant tax receipts and resilient domestic demand, its benefits have not been evenly distributed.

“The South-East continues to lag behind national averages across key metrics, including labour force participation, income tax receipts, disposable income, and public capital investment,” the report stated.

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