The Irish economy is forecasted to grow 4.8% for this year and 4.2% next year, according to the Central Bank of Ireland's recently published second Quarterly Bulletin of 2018.
The report which forecasts for the Irish economy and its views on domestic macro-economic policy issues, suggested that the economic growth is driven by domestic activity and international growth, with positive contribution from both domestic demand and exports.
“Our forecasts for further growth in earnings this year and next, combined with expectations of modest inflation, means rising wages should translate in to higher real incomes and greater purchasing power for households,” says Mark Cassidy, director of economics and statistics.
The reports projects that unemployment will average 5.6% in 2018 and 4.8% in 2019 (down 0.1% and 0.4% respectively from the previous bulletin.)
Preparing For The Unexpected
The bulletin also outlines a number of risks to the projected growth of the Irish economy, including 'uncertainty around the implications of US tax reform, possible changes to the taxation of digital services and the risk of protectionist international trading measures.'
“While today’s forecasts are positive, we have to remember that the highly open and therefore volatile nature of the Irish economy means we can take nothing for granted. We have extensive links to other economies through trade, technology and finance and so unexpected events could see the growth in our economy thrown off course,” Cassidy continued.
“As such, both the national and private finances need to be managed in a way that prepares for the unexpected, rather than relying excessively and unrealistically on Central Bank forecasts.”
© 2018 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click subscribe to sign up for the Checkout print edition.