DAVY VIEW

Global markets have lately been dominated by fears of a US recession. While this would be a negative impulse for Ireland, rapid economic growth here remains likely. Against a backdrop of higher interest rates, downside surprises have been prevalent in recent US labour market and corporate earnings data. However, the US economy is still growing. Furthermore, Ireland’s economy is resilient thanks to strong domestic balance sheets and a beneficial exposure to high-skill international sectors that are less cyclical. Even if growth in these sectors were to slow, this could be offset with domestic capacity to increase investment in housing and decarbonisation.