Great news for the Irish economy
Great news as the Irish economy is expected to grow by 8.7 per cent this year and by 5 per cent next year on the back of strong domestic demand supported by income growth, the use of savings built up during the pandemic and strong exports
Up to 167,000 jobs could be created in the Irish economy over the next two years as it shrugs off the effects of the pandemic and consumer spending returns to more normal levels, the Central Bank has said.
In its latest quarterly bulletin, the regulator, however, warned that higher levels of inflation-linked to surging energy prices would persist in the short term, resulting in what it described as “generalised cost of living increases”.
The economy is expected to grow by 8.7 per cent this year and by 5 per cent next year on back of strong domestic demand supported by income growth, the use of savings built up during the pandemic and strong exports.
This, it said, would result in a more rapid reduction in unemployment than previously anticipated and a return to full employment by 2024. Unemployment, which is at 7 per cent, is expected to fall to 5.3 per cent next year and to 4.9 per cent in 2024.
The transformed economic outlook is also expected to translate into higher taxes for the Government and improved public finances. The Government is expected to run a modest budget surplus next year.
“Despite the emergence of the Omicron variant, the economy overall is proving resilient,” said the Central Bank’s director of economics and statistics, Mark Cassidy. “With strong growth in employment and activity, the economy is already back to its pre-pandemic level, and we expect will reach its potential level of activity over our forecast horizon to 2024,” he said.
This was taken from The Irish Times, Read the full article here