The European Commission has revised Ireland’s economic growth forecasts for both this year and next year, and it is expecting increased GDP growth.
In its Spring 2018 European Economic Forecast, the Commission has predicted that Ireland will continue its strong GDP growth, however, it will begin to moderate over the next two years.
2018 is expected to so see a growth of 5.7% in GDP, and 2019 will see a 4.1% growth. In 2007 Ireland experienced a 7.8% growth.
In the report the Commission said, “While volatility in the headline national accounts figures is likely to continue in the near term because of the role of multinational companies, the domestic economy is expected to remain robust, supported by positive labour market trends and investment in construction.”
Unemployment rates are predicted to fall steadily. The report expects the unemployment level to fall to 5.4% for this year, and further to 4.9% in 2019.
Household incomes also grew on the back of “a modest increase in hourly wages and robust job creation”.
The report added that the “tightening of the labour market is expected to put upward pressure on wages and thus support household consumption in the short term”.
The Commission report warns, however, that there is still uncertainty over Ireland’s economic outlook, with ‘a high degree of unpredictability’ regarding the UK and EU potentially driving headline GDP growth in either direction.
A report in March estimated that Ireland’s GDP could be held back by up to 7% in the case of a hard Brexit.
© 2018 Checkout – your source for the latest Irish retail news. Article by Aidan O'Sullivan. Click subscribe to sign up for the Checkout print edition.