DAVY VIEW

Exactly as we forecast five months ago, November’s corporation tax reached €10bn – equivalent to the entire projected surplus this year in last month’s Budget. Strong growth for other taxes also implies continued resilience for Ireland’s real economy this year despite recent concern over a slowdown in consumer spending. Lastly, we think the Government’s Accelerating Infrastructure Report (published this morning) has scope to significantly improve the efficiency of its ambitious public capital spending programme.