Economy’s up despite Brexit
Growth is set to continue in 2020
IRELAND’S economy performed well this year despite the challenges of Brexit.
That’s the sunny outlook coming from the ESRI’S Quarterly Economic Report for Winter 2019 out today.
The economists predict we will have hit 6% growth by the end of the year and the good news is it’s set to continue next year but at a lower rate.
However, Brexit hasn’t gone away and this will still inhibit maximum growth next year.
The ESRI report said: “While certain multi-national related transactions are distorting the headline figures, the large increase in taxation receipts and the continued strong performance of the Irish labour market means the underlying economy is performing well. The persistent growth of the
Irish economy is remarkable given the strong headwinds observed in 2019, the uncertainty about the Brexit process and the moderation observed in global conditions.
“All of which are likely to have had a negative impact on the domestic economy.
“The Brexit process has merely been parked, with the possibility of a free trade agreement being negotiated between the UK and the EU in 2020.
“This will almost certainly result in further uncertainty in the years ahead.
“We expect to see the economy grow by a slower rate in 2020 of 3.3%. “Another potential challenge for the Irish economy is the issue of corporation tax receipts, which are becoming an increasingly large share of the total tax receipts of the Irish Exchequer.
“They now account for over 18% of total tax receipts and there is concern that a portion of these receipts may be windfall revenues, which are not sustainable.”
Economic forecast is for this year and for 2020
Ireland’s predicted economic growth by the end of this year
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