Irish Economy

Budget 2022 extends support for Irish economy

Yesterday’s Budget for 2022 showed that political pressures to spend the unexpected strong performance of tax revenues in 2021 have been resisted. Hence, the deficit is expected to...

Budget 2022 extends fiscal support for economy

Today’s Budget for 2022 was almost exactly in line with expectations, a €4.7bn package with just €500m of tax cuts. However, it was good to see the balanced budget target restored...

Irish government now expects deficit of just 3% of GDP in 2021

Friday’s ‘White Paper’, published by the Department of Finance, revealed that borrowing of €13bn, or 3% of GDP, is now expected in 2021, due to buoyant corporate taxes and VAT...

Irish housing starts rise close to 30,000 units in August

Our analysis of the Property Price Register shows residential transactions in Q3 returning close to pre-pandemic levels but with clear evidence that the lack of housing supply is holding...

Ireland’s unemployment rate falls to 6.4% in September

The decline in Ireland’s unemployment rate to 6.4% in September points to further gradual improvement in the labour market. This is also evident in the fall in Pandemic Unemployment...

Ireland set to sign up to OECD deal on corporate tax

The Irish government looks set to announce on Thursday (October 7th) that it will sign up to the OECD agreement on corporate tax. This decision follows apparent concessions such that...

Buoyant tax revenues provide room for manoeuvre in Budget 2022

This morning’s Services PMI at 63.7 indicates that the economic rebound has continued in September. However, cost pressures accelerated to their sharpest pace since 2000. September’s...

Manufacturing surveys point to supply chain disruption slowing pace of recovery

Friday’s headline readings from the PMI and ISM manufacturing surveys for the euro area (58.6), UK (57.1) and US (61.1) still showed a strong but slowing rate of output growth. The...

Irish residential rent inflation surges to 7% in Q2 2021

Yesterday’s (September 30th) Residential Tenancies Board (RTB) data showed rents up 2.4% in Q2 2021, with inflation accelerating to 7%. The official index shows stronger rent inflation...

Credit demand survey paints relatively encouraging picture of SME performance

The key takeaway from yesterday’s (September 27th) Department of Finance Credit Demand Survey of 1,500 SMEs was the very low level of credit demand despite the very challenging...