REVEALED: Kilkenny's foreign direct investment boost fails to mask regional stagnation
Amid stagnant regional GDP growth since 2018, per capita public investment at just €1,738 (€7,000 below the national average) and a widening Dublin/South-East divide, Kilkenny’s FDI jobs surge simply cannot stem the South-East region’s economic issues - according to South East Economic Monitor 2025
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.
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.”
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.
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.