15:32 GMT16 January 2021
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    Moody’s Investors Service said that US President Donald Trump’s planned changes to the tax rules along with the impact of the UK withdrawal from the European Union pose special risks to Ireland’s economic growth.

    WASHINGTON (Sputnik) US President Donald Trump’s planned changes to the tax rules along with the impact of the UK withdrawal from the European Union pose special risks to Ireland’s economic growth, Moody’s Investors Service said in a press release Thursday.

    "Multinationals originating from the US account for around half of all foreign companies located in Ireland, implying that big changes in US corporate tax rules could heavily affect Ireland," the release stated.

    New investment flows could decline and Ireland’s public finances would be negatively affected, but the scale of the risk is not fully clear yet as the specifics of Trump’s plans have yet to be announced, Moody’s noted.

    UK Prime Minister Theresa May's plans for the country to leave the common market along with the European Union have raised fears that a physical border could be reinstated between Ireland and Northern Ireland, stifling trade and the free movement of people and goods on the island.

    Furthermore, Brexit will disrupt supply chains with Ireland. The United Kingdom is Ireland's second-largest export market after the United States.

    Although the risks are not unique to Ireland, the Irish economy is most exposed, Moody’s said.

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