DAVY VIEW

Equity markets have so far taken a relatively benign view that the impact of events in Russia/Ukraine on developed economies will be relatively contained, with the exception of higher energy prices. Ireland is likely to be relatively insulated, with Russia accounting for just 0.4% of goods exports and because the export sector is concentrated in defensive sectors such as pharmaceuticals and services trade, it is unlikely to be affected by supply-chain issues. Household savings were exceptionally high in 2021, providing a cushion to sustain spending in 2022 alongside robust jobs growth.