World Economy

Ireland Moving Towards Full Employment

Irish GDP for 2018 has been revised upwards to 4.4%.Irish GDP for 2018 has been revised upwards to 4.4%.

Ireland is moving towards full employment as 2.3 million people are now working—and the economy is set for an additional 4% boost during the next two years, Ireland central bank report has predicted.

The positive economic forecast has estimated a 2.2% workforce surge this year with the economy set to benefit from another 1.8% rise in 2019, INA reported.

The total numbers of people in employment in Ireland would then be at an extra 89,000 and would be in excess of the pre-crisis 2007 peak level.

Meanwhile, a slight moderation in GDP growth at 3.9% is expected to provide more good news for the country’s coffers.

The Central Bank of Ireland today published the first quarterly figures for this year and the data examines recent economic trends and provides forecasts.

Director of Economics and Statistics, Mark Cassidy said: “The outlook for Ireland’s economy is largely positive, driven by broad-based growth in employment, which has boosted incomes and consumer spending.

“Crucially, our outlook brings the prospect of full employment into view as the unemployment rate is projected to fall to just over 5% next year. Average earnings are also expected to increase, by 3.2% this year and 3.4% next year.

“However, we cannot afford to be complacent as the economic growth we are projecting will not necessarily be plain sailing and is faced by real and varied risks. The small and open nature of our economy leaves us particularly vulnerable to the present uncertainty in the global taxation environment.

“Brexit continues to be the big unknown in terms of future trading conditions with the UK, a vital economic partner. And with such solid growth, the risk of economic overheating–or boom and bust economic cycles–means that we continue to urge prudence in public spending in support of stable growth.”

Meanwhile, the Irish economy continues to perform strongly, with growth in GDP for 2018 revised upwards to 4.4%, with demand from our main trading partners expected to be stronger this year than was previously expected.

A slight moderation in GDP growth at 3.9% in 2019 is expected as the economy gets closer to full employment and growth in our trading partners moderates.

However, the make-up of employment is likely to be significantly different by 2019 with approximately one in 16 people directly employed in construction compared to one in nine back in 2007.




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