DAVY VIEW

We have revised up our forecast for Irish GDP growth to 10% in 2021 versus 4.8% previously. This upward revision is mainly due to the buoyant export and multinational sectors but also because the indigenous economy is performing better than expected. The contraction in early 2021 was shallower than we feared, and a clear rapid bounce-back has taken place in Q3 as Ireland’s successful COVID-19 vaccination programme has allowed business restrictions to be lifted, with further easing to come in H2 2021.